I have 66 acres in this section and being offered $400 and 3/16 for 3 years and 2 year option. Not sure what the going rate would be. Any help would be appreciated.
Read about avoiding post prediction costs so know to look for that but any additional help would be beneficial. Thanks.
First offers are usually low. Section 3 and 1 just pooled for $1100 3/16 or $800 1/5, so I think you have room to go up. I almost always go for the higher royalty. Do not do a 2 year option. Get No Post Production deductions-do not fall for the “enhanced” clause they will try to stick on the end. Need a time frame limit on the shut in time, depth clause, do not warrant title, do not have a top lease clause. Suggest you read the MINERAL HELP tab above to get more tips.
Thanks, great info! Will dig through the section.
Which company made the offer?
With 66 acres you have some negotiation power. Remember that you can make counteroffers with value & most importantly lease terms. In the long run, the bonus will be insignificant in the light of the other provisions.
It was a from a land company, United Land, 6 months ago but still valid. Had a lot of work to get done before I could start talking.