I'm new to this, having suddenly become responsible for a family mineral lease in S11 T29S R25E. Oxy/Vintage would like to renew the existing lease on 300 acres, and is offering $25/acre and 1/6 Royalty Share for 5 yrs.
Have already read a ton about MRs on this helpful site and get the impression from other posts that $25 is the very bottom of the scale. But the fact that they remain interested at all tells me something.
Any input on what the going rates are in this area would be appreciated.
Thanks in advance for any help.
Hello, Mark. Yes $25 per acre is a bit low. You should see if you can talk them into at least $35 per acre, and see if you can boost the royalty some. We did a lease with Vintage back in July of 2013 at S36 T27S R22E and got $50 per net mineral acre and 1/5 royalty. We also got Vintage to agree to pay $1,500 for our attorney to review the lease. Our attorney then got them to modify the lease in certain areas pertaining to environmental protection, in case a party ever tried to hold us liable for any environmental issues caused by petroleum exploration on the property. Our lease was brokered by Yvonne Hicks of Maverick Petroleum (lease broker).
We have another lease with Vintage at S34 T12N R22W where we ghet $50 per acre and a 1/6 royalty.