Cash Bonus and Royalty Rates

I was presented with an offer from a landman from Charter Oaks on my mineral rights for a cash bonus of $200/ac and a royalty of 1/8. Can anyone tell me whether this is a good rate or not? I have heard that land in west Texas goes for $5000/ac, but obviously this is not west Texas. Thanks!

Since you posted this question to the Grayson County Group I suppose your minerals are in Grayson County…Is that correct? And the ‘location’ of the minerals in the County can make a difference on bonus being paid. 1/8 or 12.5% is an insult…In Texas the norm is 20%/22.5% or 25%. If you can give the location as to County and Section, Block and/or Abstract # you will probably receive some help


Thank you for the info! I am located in the Mary Broderea Survey A-G0100. It lies in the northeastern portion of the county between Hwy 69 and 82.

After checking the RR Commission GIS viewer map( find the correct Abstract # is: A-100 and the Survey is: M Broadred…the nearest production I find is about 3 miles West/Southwest. Some Horizontal wells targeting the Woodlake(10,000’-12,000’)formation have been drilled by Longfellow Energy, LP back in 2012-2013. Just to the West of A-100 I see where 3 dry holes were drilled in the past(may have been 50 to 75 years ago). I would consider $200 per acre bonus money very fair but not the 1/8 royalty(try for 20%)

Grayson County A-100/M Broadred Survey:


I appreciate the information. Is there any way to know how many net mineral acres I have? They told me that I only have a little over 8 mineral acres, but I own over 16.

I would say you own only 50% of the minerals on the 16 acres…Who was it that told you that?..the landman? Do you also own the surface acreage?..and if you do how many acres do you own? Do you have the deed to the property? It should tell on the deed.

The offer letter from the landman was what indicated the smaller acreage. According to our deed we own all of the surface acreage and there isn’t anything that shows we only own 50% of the minerals. I am wondering now, since the net mineral acreage is exactly 50% of our total acres, if we only own half of the minerals. I am going to do some research on the clerk’s office to see if I can find anything out about it.

You can also ask the landman how he calculated your interest and what names he was looking under. He may have information that can give you a clue as to where to start looking. Could be that farmer A sold the surface to relative B and retained 50% of the minerals. That happens often.

I know it has been a while since I have been on here, but I have found out that we actually only own 1/2 of the mineral rights on the property. No big deal. However, I have tried to negotiate with the landman and he is telling me that there is no way that they can give me more than $200/ac or more than the 3/16ths royalty. He said these are right in line with Grayson Co. going rates. He said I could look it up on some Grayson County website and see for myself. Anyone know of a public website to find this info? I just sent an email asking him what the name of the website is. Anyway, if no luck on this, I guess we are forced to settle at these rates. Thanks!

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