Advise in leasing our families mineral rights


#1

Hello, I’m seeking advise in mineral rights leasing for my mother-in-law. She owns rights in section 11-10N-14W. 160 acres more or less. I believe the prior company that leased it went bankrupt and she recently received an offer from Bistro energy for $500/acre, 3 yr term with a 2 yr option, and 3/16th royalty. I’m not sure if this area is productive or not. I’m not sure how I would find that out for her. My goal is to maximize her income from these rights. She just recently lost her husband and has asked me to assist her with this. This is un-treaded water for me so I’m reaching out to anyone with advice on leasing her rights. Thank you

Jeremy


#2

Hi, Just saw you’re post today and hope you got help. There are many discussions of good and bad leases - no post production costs, a pugh clause, no extensions, etc in these pages. Unfortunately not much is going on in Washita so not a lot of feedback. If you go to the home page for this site and look through the getting started section and some of the general discussion there you will find sources of information. And some very good advice. Even examples of clauses you want in a lease. Good Luck. I hope it has turned out well for you.


#3

Jeremy: Generally someone with 160 acres has leverage for the best possible terms and clauses. While the bonus is important, your mother-in-law (and those to inherit from her) could be bound to the terms for decades to come. Be sure to have the lease reviewed.