Royalty percentage

Texas Mineral Rights Reeves County, TX
1

I own property South of Pecos and have had a mineral lease since 2oo7. That lease is up and I have had several landmen calling. The wife and I have owned the land for 30 years. We took the first offer but things have changed dramatically since then. We have had some very lucrative offers but the problem is we are not sure about the ROYALTY PERCENTAGE. ONE COMPANY OFFERED 16%, ANOTHER 12 1/2%. The first lease was 25% but the mineral lease was small according to what we are being offered now. This is mineral classified land. We are sitting right in the middel of the drilling on all sides.

Can someone please inlighten us about dealing with the royalty percentage and how it works. We trying to get a Fair deal on this next contract. Thank yoy

2

jackson -- frankly, I can't believe anyone would make a good faith offering less than 20% Royalty. In fact, 25% has become the norm for mineral classified, especially in your area of Reeves County (but you could be more specific on location). Later -- Buzz

3

I agree with Buzz. How many mineral acres? Go for 25%, but I would not settle for less than 20%.