Hello, I was sent a lease off for Section 10-6N-3E:
$150 per acre - 1/8th royalty / $125 per acre - 1/7th royalty / $100 per acre - 3/16th royalty
How do you figure out is this offer is a good value?
My mom had always taken the higher bonus - lower royalty, what are opinions about that?
Thank you for any help you can provide!
Lease bonus amounts are not public information. The closest you can use is a poolng order in the same section or contiguous sections within the last year. Nothing in the last year, but section 9 had a pooling in 2021 for $150/ac at 1/8th and $100/ac at 3/16ths, so your offer is in the ball park.
Yes, I tend to agree with your mom. I almost always take the highest royalty.
If you have not leased before, it would be wise to get an oil and gas attorney to review any draft lease as they are almost always in the operator’s favor and needs some significant edits to get into a more balanced mineral owner’s favor. Never hand over a lease without getting paid that day.
Thank you Ms. Barnes! I appreciate the knowledge you share on here it is so useful!
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