My last lease expired. I’ve received 1 offer, but need help determining if this is what the lease is worth. This is my first time using the forum.
Welcome to the forum!
For me, I consider 3/16ths the lowest royalty to consider. I always ask for the 1/5th and 1/4th option to see what the lessee says. I also ask for a copy of their draft lease to see what it says. In almost all cases, the lease needs major revisions to be more in favor of the mineral owner.
Poolings in the contiguous sections are usually a good indicator of the market, but only within the last year. Roan pooled sec 30-9N-7W in April 2019. Those amounts were $4200 @ 3/16ths, $4000 @ 1/5, $0 @ 1/4th.