Rick we have an offer like that with Centennial. Our lease is to expire in August.
What are Sections 42 Block 72 PSL and Section 39 Block 72 in Reeves County leasing for at this time? Bonuses - are they $12K per acres?
I will get in contact with you
Have received an offer from Centennial for 12k pnma, 3 year, ¼ royalty with our lease and addendum. This is for section 38 Block 52 t-7, T&P Ry. Co. Survey.
Thanks for the information. One company offered me $8K but I want $12K just like all the other leases I’ve negotiated over the last 7 months for various sections.
Woody Kent Cowan. In asking for $12K , are you allowing a 2yr option in the lease? I have been offered $8,000, but want $12K if the lease does contain 2yr option. If no 2 yr option, will accept $11K. I’m new at this. Do such terms make sense?
All my leases I’ve signed were 3 yr w/2 yr. option - UNTIL Reeves County took off with oil production. NOW, I will only do a 3 yr. lease - NO 2 year Option The boom will get better and better in the not so distant future. I want to get the highest Bonus payment I can. BECAUSE, it may be my last Bonus. You see, the 3 year lease give the Company 3 whole years to start drilling. Once or IF they start drilling, they have met their end of the bargain. No more Bonus payments, until they stop. The 2 yr Option is even worse - they Option paid for the extension is based on today’s market. It only benefits the Company by keeping that rate low if indeed the market takes off.
Thank You Brenda for your reply. Very helpful. Will eliminate 2yr options completely.
Update on Section 38 Block 52 T7S T&P survey. We successfully negotiated a lease with Centennial Today for the following terms:
15k pnma ¼ royalty 3 year lease Our complete addendum to the lease
Thought ya’ll might find this interesting.
Rick we have just signed a 3 yr lease extension with Centennial for 1/4 royalty and a $15,000 per NMA bonus. Let’s keep our fingers crossed for a well in the near future. Thanks for the help. Robin Brown
Is it possible to renegotiate a lease ? When and how? I assume I need to contact a lawyer. No activity has taken place on the land yet, but area is under current assessment. I signed up before Alpine high was announced at a low per acre rate. Option comes up early next year. I was told I would automatically get a check for this low rate,by leaser. It is a contract stipulation. After that, 2 years later, I could renegotiate per acre price. To say the least, I do not want to be stuck accepting a bonus that is redicously below market rate. It not only is bad for me, but it ultimately dings leasing rates for all the property in the area. Is it very expensive to get a lease renegotiated?
A lease is a contract and you are bound to the written terms. If you agreed to lease for $XX as initial bonus of 3 years and gave the lesse the unilateral option to extend for an additional 2-3 years at $YY, then you will not be able to demand any change in the $YY or in any other written terms of the lease. However, if the lessee does not extend and pay by the specified date, then the lease will have terminated and then you can negotiate and sign a new lease for a different bonus and with different terms. Do not accept a late payment. However, if you have moved and not notified the lessee of your new address, then the lessee will most likely only have to show that the payment was sent in a timely manner to the address on record.
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Thanks for the heads up.