I’ve never seen higher than 25% royalty, but 1000/net acre is a bit low for Reeves County bonus. I’d ask for $2000/acre, 3 year term, vertical pugh clause allowing the lease to terminate after expiration of primary term as to depths below production so that if someone else comes along and wants to lease for something deeper than the Wolfcamp you are available to lease.
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I just wanted to thank everyone for their helpful input and responses. I called the fellow yesterday and left a message. He called me back today and it turns out that I was not the heir after all. They found the legitimate owner, so I won’t be making any deals today. I do however have quite a treasure trove of newfound knowledge regarding oil/gas leases now! lol If it turned out that I had to go through this, you all would have given me a great deal more to be armed with than I started out with, and I thank you all very much!
Well, I’m not an expert, but it sounds like a lot to me. I inherited some mineral rights from a distant Aunt, but there were so many heirs in the family, I only got a small amt. on 118 acres. My bonus was only 600, but I have yet to get anything and its been several months. Mine was in West Virginia. I think with the country trying to be energy dependent, it has started the boom.
I’m not familiar with that section, but I leased some property in Yoakum county for $600/acre for 3 year leases 4 years ago.