Question out of curiosity

[jpowell_home]

Satisfying some curiosity… or rubbing salt in my own wounds… as the case may be.

Back in 2010 my family signed a lease for our property in Zavala County… we were paid $500/acre for the first 3 years, with 2 one-year options payable at $100/acre to extend.

I am just curious how that might stack up against what was paid/offered to other folks in Zavala County. I know that leases can vary and sometimes be very specific as to depth, etc… but our land now has two wells producing from the Eagle Ford shale in that area, so I think ours was a pretty standard type of lease.

Anyone want to sooth my nerves and tell me that we did okay with that amount? Or agitate me greatly by telling me that we could have easily negotiated a much higher amount, and the family got collectively shafted?

Thanks for entertaining my brain.

[M_Barnes]

Well, to make you feel better, the lease bonus is actually not that important in the big scheme of things. The royalties that you make from your current wells should far outweigh the old bonus amounts. Look to the future and give grace to the past. You did the best you could with the information you had at the time and it doesn’t matter now.