We just received an lease extension offer from Continental for 1/4 royalty, and a $500 bonus per acre. It would be the standard 3 year lease. Does the bonus seem low in light of the current activity in the area? Thanks again to the experts of the forum for sharing their knowledge and experience with all of us.
Gil: If it is an extension of a current lease, there is no negotiation. If it is a new lease offer, meaning the original lease has expired, you can negotiate new terms.
Yes, the current lease is expiring in Dec. This is a new offer.
Depending on the amount of acreage you should be able to get $1500 ac & 1/4th. 3 years & good clauses.