I deal with minerals in other states, and we use our own lease form. One landman that contacted us to lease our interests in Weld County jumped down my throat for even suggesting the idea. Is this unheard of in Colorado? Have any of you ever used a non-company lease?
Thank you for your help.
Yes, Yes, Yes use your own lease form. Do NOT let the Landman intimidate you!
hmm, what was his name?
I work for an operator in Denver and we have used lessors' lease forms. Just like any other lease form, some language needed to be negotiated and we did. No problem with that.
Leases are almost all the same and all negotiable.
Permalink Reply by sj 1 second ago Delete
Hi, I think an objective determination of bonus rates and royalty rates can be found on the weld county website. Go there to see what rates they have received from auctioning their land. Some of the bonus amounts are $2500 to $2750/acre with a royalty of 25%. They have posted their leases and while the bonus amount has been redacted out, the royalty amount is there. You can also see which companies bid on the leases and what the winning bid amounts were. Go to this link: https://www.co.weld.co.us/Departments/Purchasing/CurrentRequests/Oi...
Some of the users of this forum have said that they got a bonus of $400/acre and a low royalty. While that may be true a lot has changed since 2011. You would be giving away the farm if you got so little. The oil co's would be getting a steal. Hope that helps.