Anyone getting any offers in this area? We were offered $800, 3/16ths, 3 yrs with 2 yr. option for $900, by Vernon Smith, and don't like the option.
We leased 9 acres in 31-19N-15W in October 2014, with NTX Energy out of Dallas, TX. Terms were $400/acre bonus, 3/16 for 3 yrs, and 2-yr. option @ $500/acre. Township 31 is directly south of 7, at the bottom "row" of township.
NTX's original offer was $300/acre, so I negotiated for a little more, but now I think I didn't get a very good deal. I'm still learning how to negotiate, and I generally have a "don't get too greedy" mindset.
I don't like 2- or 3-year options either, but they seem to be very difficult to get removed these days. The rationale I've been given is that cost of drilling with the new methods is so prohibitive, it is impossible for oil companies to get all the properties they lease drilled within the 3-year period. I also realize oil companies use any argument they can to get their terms!
Vernon L. Smith & Associates is making offers in the area on behalf of Carrera Energy out of Midland, Texas. I have mineral rights in 19 & 20, 17N - 15W, just a couple of miles south of you and have talked with them. I don't expect to conclude a deal however as I don't like their terms at all and am skeptical about Carrera Energy's intentions and limited capital. The only option that you should agree to is their option to call you to discuss renewal terms when the lease expires in three years.
I last leased almost five years ago with QEP out of Denver for 1/4 royalty and $1,000 per acre but alas they are long gone from the region.