America’s conversation place for mineral & royalty owners
Huerfano County, CO - Oil & Gas Discussion
Information
Huerfano County, CO oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Members: 6
Latest Activity: May 21
Discussion Forum
Leasing in Huerfano County
Started by Jeanne Mowdy. Last reply by Jeanne Mowdy May 21. 7 Replies 0 Likes
Has anyone received any lease offers for Section 14, Township 27 S, Range 69 W in Huerfano County?Continue
Comment Wall
Comment
-
Comment by Gary L. Hutchinson on May 1, 2012 at 6:58pm -
Dear Jeanne,
If your land is close to Shell's target area you have considerable flexibility in granting a lease. You must make sure it will be good for both parties, i.e.. Collect a reasonable bonus for taking your minerals off the market.
5 year leases in frontier areas are reasonable and common. It is harder to anticipate what the extension price should be for 5 more years. I advise my clients to get better lease terms regarding royalty protection for longer term leases. Of course if you have more acreage, you have more negotiating strength.
Gary L Hutchinson
Minerals Management
-
Comment by Jeanne Mowdy on May 1, 2012 at 11:57am -
I told the landman I wasn't interested in signing a 5 year lease with a 5 year option. So far I haven't heard back from him. I would be interested in leasing for a shorter term. Are 5 year leases standard for Colorado?
© 2012 Created by Kenny DuBose.
You need to be a member of Huerfano County, CO - Oil & Gas Discussion to add comments!