I have 50% mineral rights on 1/4 section of land in Northern Morgan County. I have received an offer to lease. The offer is: 5 yr. term, 1/8th roy. and $30/nma bonus. Is that considered a good offer? What exactly the the $30 nma bonus consist of?
I also have a 1/2 section of land (Surface and Mineral) west of Sterling in Logan County. It used to produce, but there hasn't been any active lease on it for years. How would I find someone interested in leasing it.
Does not sound too bad, what is the company? We have a 50% share in a 1/4 southwest of Wiggins. Leased to Chesapeake in late 2011 with a 3-yr lease, option to renew for 3 yrs. Have not been contacted about renewal. Not sure what the nma means in your situation.
What is legal in Northern Morgan County. I have interest in 4N 60
Where are you located in northern Morgan County? I have interest in 4N 60W.
Jim
Jim Peif said:
Where are you located in northern Morgan County? I have interest in 4N 60W.
Jim
T6N, R57W
5 year 1/8 and $30 sounds low to me. I do not lease for more than three years and never less than 3/16.
The nma stands for net mineral acres, so it means if you truly own 50% of 1/4 section than that would be 50 x 160 acres=80 acres if it is a true 640 acres. It may depend on the section number whether it is truly square. What is your total description? $30 x 80 = $2400 which you receive "now". They royalty part comes in after a wells is drilled. If this is your first time, you might want to go to the top of the page and read the MINERAL HELP section on leasing tips. Also read about the last six months of comments on the counties around you to get up to speed. Then you might want to go read the last six months of comments on the Stephens County OK page. The geology is different, but there is quite a lot of good info on the correct lease clauses to have. You do not want to use the lease form that the company will send you because it is totally in their favor and not in yours.
M Barnes said:
5 year 1/8 and $30 sounds low to me. I do not lease for more than three years and never less than 3/16.
The nma stands for net mineral acres, so it means if you truly own 50% of 1/4 section than that would be 50 x 160 acres=80 acres if it is a true 640 acres. It may depend on the section number whether it is truly square. What is your total description? $30 x 80 = $2400 which you receive "now". They royalty part comes in after a wells is drilled. If this is your first time, you might want to go to the top of the page and read the MINERAL HELP section on leasing tips. Also read about the last six months of comments on the counties around you to get up to speed. Then you might want to go read the last six months of comments on the Stephens County OK page. The geology is different, but there is quite a lot of good info on the correct lease clauses to have. You do not want to use the lease form that the company will send you because it is totally in their favor and not in yours.
30/acre means 160 acres x $30 = 4,800 for your bonus check. In 2010 I got 55/acre for 160 acres something like 9,300 for what they called "the consideration payment' 17% royalty 3yr. term. It sounds like you should be getting almost twice for your per acre and 5 years sounds long. What's their "suspended well payment" equal? $70? I'm from Alberta, where's Morgan County. Is there a lot of activity around there? Lot's of ranch country? Try to get your royalty up to 17% or more. Some settle at 16% not bad, but 12.5 sounds too low to me.
NMA= NET MINERAL ACRES