I just received an offer to lease my minerals in Carter County 29-2S-2W and 34-2S-2W
What is good source to determine the market rate? Or if the offer is a good one?
Lease offers are not public. The closest thing is the most recent poolings in the continuous (touching) sections around your within the last year. There are none at the moment. The next best thing is a general feel for older poolings nearby. Continental pooled section 17 in 2020 for $2375 @ 1/8th, $1900 @ 3/16ths, $1424 @ 1/5. Sec 18 & 19 in 2020 for $2848 @ 1/8th, $2763 @ 3/16ths, $2550 @ 1/5. Lease offers this year are probably quite a bit lower than that. Most first offers are not the best they can do. Depending upon who the lease is from you would be wise to get an attorney to look at it because most first drafts are not in the favor of the mineral owner and they need a good bit of negotiation. You can also wait for force pooling which is another good option (in my opinion). Never lease two different sections on the same lease. Never hand over a lease without getting paid. Ever…
Thank you that is awesome advice. How long is the usual wait for forced pooling? There is a lot of activity in nearby sections.
The wait for forced pooling totally depends upon the overall drilling plan of the company that is working the area. I wouldn’t even begin to guess. Ask the landman. Sometimes they know and sometimes they do not.
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