Hello:
Oil and gas is pretty brand new area to me, and I am trying to learn more about this.
I have an offer to lease 6.6667 net mineral acres for Section 11-3S-3W, Carter County. The lease offer includes primary term 3 years, 3/16 royalty, and $750.00/acre lease bonus.
I have read oil and gas forum, but I can't seem to find the answer.
It seems 3/16 royalty is pretty reasonable, but I am not sure about the lease bonus consideration. What is the reasonable lease bonus consideration for Carter County?
Does it make any difference if the offier is for different counties, such as Stephens County?
Thank you.
Lia,
That is not a bad initial offer. R.D.Williams and Bearcat have both been leasing in the area. I'm glad to see some activity. You need to negotiate the clauses in the lease as the default one will leave quite a bit to be desired.
I think there may be more bonus available but timing will come into play. I did better than that 10 miles north and have not heard a peep out of our property a fews miles south of you.
Hi Rick:
Thank you for your reply. You mentioned about negotiating the clause in the lease. Could you please be more specified on that? I actually tried to negotiate the lease bonus amount per acre, but it didn't get honored.
Thank you.
Rick Howell said:
Lia,
That is not a bad initial offer. R.D.Williams and Bearcat have both been leasing in the area. I'm glad to see some activity. You need to negotiate the clauses in the lease as the default one will leave quite a bit to be desired.
I think there may be more bonus available but timing will come into play. I did better than that 10 miles north and have not heard a peep out of our property a fews miles south of you.