I have inherited the mineral rights to approximately 260 acres in Harrison County of which 67 acres are part of a lease that oil and gas company want to drill two oil wells on. It will be 80% of the oil lease. The company is offering $ 200 an acre bonus to sign. Is this the average? They are also offering 20% royalty.
This is all new to me and my estate lawyer has suggested that I get more information before I sign.
Ask your estate attorney for recommendations for a good oil and gas attorney. Generally, a draft lease from an operator is not going to be in your favor and will need significant edits. Most leases in Texas run at about 25% from what I have heard. The bonus rate is tied to competition. The royalty rate is more important to me.
Thank you. He is talking to oil and gas lawyers he is friends with. At this time he feels we don’t need a lawyer but he speaking to him last night so we will see. The bonus rate is what we were trying to determine. Thanks for the info on the royalty rate. I am the share holder holding up production so hopefully I can get the other 5%.
Let me clarify, i am the last to sign as we were held up by having deed transfer due to this being a recent inheritance.
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