1 mineral acre

A petroleum landman in East Texas has reached out to my family about some small mineral acreage we own. I personally only have about one mineral acre which I had totally forgot about until he contacted me, it is in close proximity to an active productive well in East Texas. They have future plans to drill a horizontal well that will include our track of land.

He has reached out to me and other family members sent contracts for the lease and a sign on bonus.

It’s my understanding the royalty in East Texas is a standard 1/5 rate?

How do you determine sign on bonus? how negotiable is this? Would this land man have competition also trying to acquire the same lease?

There is NO standard royalty rate in Texas. It’s negotiable, a 1/4 royalty for no longer than a 3 year lease and NO option term.

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