We have been offered $300/nma and 1/5 royalty for a 3 year lease. Is this a good offer?
25% of the hole is standard and $500 a NAM only a 3 year lease. Please, please, have your lease looked over by oil and gas attorney, he can save you $1000’s and it’s a small price to pay for something that will pay you for many years to come. Most of all my leasing is done by Trust bank, this is what they usually ask for and receive.
I have a couple of parcels of land in Ward, but not close to you.
Kevin, The answer is “NO”! I am not sure of the price per net MA in your area for bonus money but whoever the landman is is trying to steal your minerals. Do your homework & don’t rush into an agreement. Chris is correct get an oil gas attorney to handle all negotiations! The royalty percentage is 1/4 or 25%. There are good attorneys in this group. There are hundreds of companies in Texas looking to lease mineral rights, many with multiple fronts. I get two letters per week. Keep asking questions. Go back and read past postings for info. Mike
Hi, I was contacted by the White Rock Royalty LLC (WRR). They said they specialize in making sure the mineral and royalty interest of the royalty ownership is properly accounted for and dispersed from oil and gas companies to the proper royalty owners.
Through the course of their investigation, they have recovered around $7,000,000 in owed royalty interest for various mineral owners.
At no cost to me upfront, they are willing to start looking through the company’s records with my permission to see if I have been paid properly. If they recover any funds due me, they will take a 20% fee of the funds recovered as fees for work done, and if there are no funds to be recovered, I owe them nothing.
Has anyone in this group ever heard of such a company: White Rock Royalty LLC (WRR)? If so, is it a reputable company?
Are there any royalty interest owners in this group ever represented by this company?
Louis
I have been contacted by White Rock Royalty. This company wants to purchase your minerals. My Granddad’s mantra was you can sell the land, but you can never, never sell the minerals. If you think the oil company owes you that much, you can hire professionals to clarify any errors for a whole lot less than 1.4 million. Remember Kevin, the big print giveth, and small print takes it away. Get a lawyer. They want your minerals and even if they say they only want a small fraction, the small print will give them ALL of your minerals. Best to toss any offers from them.
Okay, great advice. Thanks.
I would like to hear from others who had the same experience with White Rock Royalty (WRR).
Louis
Hi, I am new here and have a similar offer. They came up to 1/4 but thought the bonus should go up? Wondering if I counter at $500 NAM or go a little higher to settle at $500. Thanks!
25% royalty is the norm as noted by others. Ward County is a pretty hot area - anything less than $1000 per NMA seems low to me IMO.
Just as important are the clauses in the lease tied to depth rights, production costs and similar issues. This is why one should get a good O&G lawyer when working on a new lease.
Ditto on Rock Man. Once I had an oil company tell me that the land they found belonged to my granddad. We took the lease but our O&G attorney added express warranties and many years later when they figured out that it wasn’t our land, they could not come back and get any of the monies paid because of the clause the attorney had included. For something that is going to pay out for many years into the future, you’re not very smart if you try to do it yourself. Remember the big print giveth and the small print taketh away.