ExxonMobil has contacted us regarding a brine lease in Titus County, TX.
Currently, ExxonMobil is offering - $15k signing bonus & 2.5% or 6.5% royalty with cost deductions. ExxonMobil is telling us they are unable to provide an estimated amount for the cost deductions. Therefore, we are struggling to decide which option will bring in more income.
Does anyone have any recommendations?
Did anyone get a better signing bonus?
Please let us know.
Sincerely,
STUCK
How many acres do you have?
I don’t have it in front of me. But not alot. Do you know anyone who has negotiated with them? And what was the outcome?
Speaking only from experience. I would take the offer with NO production fees and royalties paid at the well head whether sold, used on site, or stored. Still paid my royalty %. Been doing this for over 30 years. Post production fees add up very quickly. Just my two cents…….
Usually they do about a $250-$500/acre signing bonus.
Our agreement was for 1/16th with cost deductions, they didn’t offer us the 2.5% of gross.
Will be interesting if the government puts money into processing plants if they’re wanting to reduce the dependance on China for minerals, which is why they may be offering the 2.5% option.