Negotiating lease on a disposal well on the 5 acres they want what should I expect in compensation ?
Been out of the business for a while. Would ask for a lease bonus, so much a barrel disposed and so much a month when well not in use. Maybe start with $.25. You can always go down. But I am dated on this. Remember they probably need the well in this location.
They offered 750$ a month or 8% of gross whichever’s higher. I had someone tell me they thought they had a offer of 1000$ a month and 6% of gross and 1/2 the skim oil if there’s a pit. Generally they are on 2-3 acres and they want 5. Any info will help
1/2 is a bit aggressive, and you should capture oil revenue from % of gross if drafted correctly. Not saying to not ask, just saying asking for half is strong.