Hey everyone. My mom inherited around 9 acres of mineral rights in Richland County, Montana. Near Culbertson.
There is a producing well in the area.
I’ve been negotiating with a contracted landman, and we’ve been going back and forth. He’s been, in my opinion, reasonable. However, he is taking a hard line on the royalty pavement (18.75%) net vs gross. I’m asking, due to the small size, for a free of deductions clause. I even offered to have any deductions capped at 5%. He flat out refuses to negotiate on this one.
I also asked for the extension bonus to be paid upfront, but we were able to agree on paying it at 100% when executed. Again not talking a lot of acres here.
He did raise the shut in clause that limits it to 2 years, but wouldn’t increase the rate from $1 per acre.
Anyway, I’m really stuck on the gross vs net question. I’m fighting for everything I can get (potentially) for my mom, and I just need to know how hard of a stance I should take on this one.
Any advice would be appreciated. Thank you.