I received a lease offer on my mom’s behave in Eddy county and am curious if it reasonable.
Section 24, Township 17 South, Range 25 East.
What is a reasonable lease rate per acre per year and for how many years???
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Todd,
a typical “primary term” for a lease is 3 years, some companies try to throw in a 2 year extension but it is not advantageous for the mineral owner to allow the 2 year extension. As for the lease bonus amount, that can vary depending on the royalty you opt in for. What is the current lease bonus per acre they have proposed?
I just noticed all of my typos, wow mighty fat fingers.
Let me see. I think it s $10 for consideration of the contract and $100 for signing, and 20% of royalties. The lease is $200 per mineral acre for the three year lease minus the bonuses.
Ah, the glory days of hitting HRs at JC Park off of 26th Street. Who is leasing in 17S 25E? That is pretty far off the beaten path. Cursory glance I didn’t see any leases filed in that township in the last couple of years.
A few hundred per mineral acre for 3 years sounds about what you should expect to me.
Schoeffler Energy brokering for EOG is my understanding.
I know about Artesia and how rich the production is there. In Dawson County Texas, another rich area, we have in the last four years signed three leases at 25% on the lease itself and $300 per participating acre. One of those leases was with Schoeffler. Do not take a 20% lease, insist on a 1/4 lease. And insist on at least $300 per participating acre. The area around Artesia is worth it.