We have received an offer on 40 acres in Franklin County, Illinois
Bonus: $80 per net mineral acre
Term: 3-yr paid-up
Royalty: 1/8
Is this a fair offer? What drilling activities are taking place in the area?
Many thanks, Paul
1/8 is the lowest royalty generally offered, so no, it is not a great offer, and you could get more on the bonus, as well. Plus, you would want additional provisions in your lease to protect your interest and allow you to maximize your ability to exploit your minerals. Generally speaking, never accept the first offer, ever.