Received a lease proposal request for Sec. 10-T7N-R5E from Superior Title Services, agent for Cobra Exploration Co. The "lowest-tier" offer is $225 per net mineral acre with 1/8 royalty, next up is $150/acre with 3/16 royalty, and highest level is 1/5 royalty with no bonus.
Provided that I can get Cobra to agree to omit the 2-yr. option clause to the 3-yr. lease, I plan to take the 1/5 royalty option.
Anyone else receiving offers on this parcel or area nearby? Is this the going rate?
Hi Angela, thanks for sharing the offer information! Do you know if there has ever been production activity on this parcel prior to this offer?
Sorry I didn't answer previously! Yes, this property has been leased continuously since 2000, at least. Our share is only 1.5 net acres. I went ahead with the no bonus and 1/5 royalty. I have recently taken over managing my mother's mineral interest properties, and am still learning about lease negotiating.
Hi Angela, I'm in a similar situation and learning all about this process.
I'm assuming that there is no production on this property (just leased since 2000, but no drilling or production) - is that correct?
I've got property in S2 T5N R5E, appears it has never been drilled.