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I just got my offer from XTO-Exxon offering $100 TOTAL bonus on 8.49 acres with mineral rights owned by approximately 10 cousins and 12.50 % on Royalty, and if I'm following the legalize in the contract correctly, looks like we also pay 12.5% of our royalties for "post production costs" and up to anther 12.5% for ad valorem taxes by state, city, federal etc. Is basically 25% of royalties common for "costs"....thus far looks like the Parrish clan is paying for the priviledge of getting the oil or gas out of the land where we have mineral rights.
Another question I have is about the XTO-Exxon people.
Have the various oil and gas people divided up the state and only one company is going to make an offer or will there be other offers from other companies. If this is the only company in the area, looks like a monopoly and they can offer one deal, if you don't take everyone who owns the rights is SOL.
Marlene, The lease they have offered you is really bad, super lowball. I recently received an initial offer of $500 per acre and 15% royalty. 12.5% is the least they can offer under federal law. I believe a ballpark bonus per acre should be at least $1000 and royalties in the range of 15-20% The "post production costs" and taxes in your lease are also something a "good" lease will omit. Talk to a lawyer if possible to renegotiate your lease. Do not sign the one you have. Be patient and get some good legal advice. XTO is not the only game in town there are many operators in Marion county. The initial offer is always lowball. Kyle Nuttall is a O&G lawyer on this forum and may offer you some advice. Steve Wilson
Marlene, I was offered a lease from EQT and had no idea what to do...I Hired Kyle Nuttall and he`s doing a GREAT job...my well dates back to 1908 and he`s bringing everything up to current standards..Do yourself a favor and hire this lawyer...Brian
I have property that is on the boarder of Marion and Mannangollia County what is the attorney Kyle Nuttall Phone Number and doe’s anyone know of this company called Blue ridge royalties LLC
My siblings and I signed a lease with EQT that was closer to $2000 per acre for our unproducing oil rights in Marion County.