My daughter has received an offer to lease land she inhereted from her grandfather in Leon County Texas. What are the going bonus and royalty rates? I’m trying to check the amounts offered.
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Depends on what part of Leon county. Do you know the survey and abstract?
Yes. There are two tracts. They are in the H>H> Milleions Survey A-541, and the N>C> Killough Survey A-468.
They are described as Tract 1: 116 acres, more or less, being that tract conveyed by W.D. Wood to Hohn Chase in that Warranty dated October 10, 1900, recorded in Volume 8, Page 288 of the Deed Records of Leon County, Texas. Tract 2: 30 acres, resurveyed and found to contain 33.27 acres as described in that Mineral Deed from Dora Chase et al to W.V. Geppert, dated April 17, 1934, recorded in Volume 100, Page 239 of the Deed Records of Leon County, Texas.
Hope this answers your question. Thank you for your repsonse.
From the US Leasing Price Report: Bonus amounts per net acre are low: $50, high: $956, common: $350 Royalty Rates are low: 3/16ths, high: 1/4th Term 2-5 years
As CowboyMichael suggested, depending on the location could increase or decrease the rates. But this should give you an idea of what to expect. Also, make sure you are considering lease terms. East Texas is a hot pocket for Lithium, Cobalt and Bromide right now. You may want to consider these minerals in your lease. And if you are, be very careful to understand what you are signing. There are companies taking grave advantage of mineral owners for Lithium leases.
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What do we watch for on Lithium wording? My leases state all minerals.
I have a lease in these two abstracts. The operator just renewed it after dropping other abstracts. So they like the area. $1325 / 25% / no costs
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Best bet is to seek and attorney that has experience with this. I will give you things that I keep in mind. Conveying rights to explore for Oil, Gas and Other Minerals is good, it gives the operator the rights to explore for basically all minerals not just hydrocarbons. But looking at the rest of the lease, does the royalty clause explain how to pay for other minerals? Likely not, probably just oil, natural gas and liquids. Also, the rest of the terms in the lease, how are they interpreted regarding other minerals if at all. Most older leases Producer 88s convey Other Minerals without a royalty clause to cover them. Occasionally, I see sulphur or coal covered. In these cases, I feel the operator that is commercially producing for other minerals should reach out and work with you on how to pay, could be in the division order in Texas they are required to be signed and they are contracts. There is still a lot to understand and learn about Lithium, Cobalt and Bromide.
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Thank you nielloeb. That is most helpful. The initial offer we got is for $700, 20%, and deductible costs. I’m putting our counter together.
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Thank you Jack. I appreciate your insights
Hi nielloeb, would you mind sharing which company renewed your Oil & Gas Lease on those terms? That would really help other minerals owners in these abstracts get a similar deal. Thanks!
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Mitsui. The lease has the renewal at the same rate as the original.
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That’s the same company that we are dealing with
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Just as an aside, I’ve found the info published there to be quite broad and not all that helpful. Often out of date.
Experience in my lifetime of owning minerals in a few dozen counties is that the feed store network is where you want to get the most accurate data (but be sure to filter out the known fishermen, aka liars 
). As with any type of negotiation, the details matter. Number of net mineral acres, location, timing - all these things play into leasing. It’s far more than “what’s the going rate” in so and so county.
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Mark A. O’Neal & Associates is handling or transaction for the operator. Does anyone have experience with them?
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Reputable brokerage- exchange lease for a check.
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Fredonia Land and Resources paid $1,000/net. Acre and 22.5% to a person whose 1,400 plus surface acres that are located in the Trinity River Bottom on the Eastern Side on Leon County about 5 miles south of Hwy 7 East of Centerville. I SAW the LEASE!
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With respect to what is important regarding mineral leasing, the amount of NET mineral acres has significant impact here. You mention surface acres only. Are you saying 1400 net mineral acres were leased, or is the net acreage unknown?
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That’s some awesome news. About a mile north of our places. But is that mineral acres or surface acres?
50% net. Mineral Acre ownership.