I have been offered a $900.00 land lease bonus and 3/16 royalty for minerals in section 10 Beckham County from Bluegrass Resources. That seems low to me. What is the going rate for that area? Anyone familiar with Bluegrass?
Welcome to the forum. It is more helpful if you give the complete section, township and range as there are many section 10s in Beckham. Lease offers will vary across the county, so need the exact location.
3/16ths is a minimum for many folks. Ask what they are offering for 1/5th and 1/4. I prefer a higher royalty and a lower bonus if I can get it. Also, it would be wise to invest in a good oil and gas attorney to help negotiate the lease as the draft lease is not in the mineral owner’s favor and could cause you to miss out on better royalties.
Ask Bluegrass who they are leasing for. They are probably an agent.
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