just got a letter wanting to lease 500 an acre i think this is way low. Any help
Lease offers have been lower this year due to competition. Offers will come with a bonus/royalty pair, so I always ask what they are offering for 1/5th and 1/4 to see if I can get a higher royalty. The royalty is more important to me than the bonus as it usually far outweighs it in the long run if the well is successful.
Received the same offer a couple of days ago, from Dutton- 2 years, at 3/16. They also want a 2 year option to extend on the same terms. Definitely agree, the royalty is more important to me - I plan to ask them if they will give a 1/4 or 1/5, and at what bonus amount.
I never do an extension. That implies speculation to me and it puts all the options in the lessee’s hands, not the mineral owners. The are only leases in the last few months that I see in that township have been at 3/16ths, but it never hurts to ask.
Anyone know who Dutton is leasing for?