# Custer County lease offer
**URL:** https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433
**Category:** General Mineral Rights Discussion
**Created:** [September 3, 2025, 4:58pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433 "2025-09-03T16:58:27Z")
**Posts on this page:** 9
**Page:** 1
### Author:  [@MTM2](https://www.mineralrightsforum.com/u/MTM2)
#### Post date: [September 3, 2025, 4:58pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/1 "2025-09-03T16:58:27Z")
Just received another lease offer for Custer County:
Section 6, Township 14N, Range 20 West.
The company extended the offer are Liberty Minerals. They haven’t listed an amount as of yet however, I am interested in finding out what are other mineral offers being offered in that area? Also, does anyone know of upcoming drilling?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [September 3, 2025, 7:47pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/2 "2025-09-03T19:47:45Z")
Mewbourne just finished a horizontal well in that section earlier in the year. Were you already leased or pooled?
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### Author:  [@bjs2](https://www.mineralrightsforum.com/u/bjs2)
#### Post date: [September 4, 2025, 5:41pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/3 "2025-09-04T17:41:27Z")
We were offered $500.00 @ 1/8th or $250.00 for 3/16ths, for 3 years with a 2-year option, in Section 20-12-14. I told them to get the low hanging fruit and then call back when they had a serious offer. Never take the first offer, and avoid options at all times.
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### Author:  [@MTM2](https://www.mineralrightsforum.com/u/MTM2)
#### Post date: [September 5, 2025, 5:04pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/4 "2025-09-05T17:04:02Z")
Thank you for your response. I have been leased for years from Rock Creek. Why would I be receiving so many new offers? Are there plans for new drilling?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [September 5, 2025, 8:15pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/5 "2025-09-05T20:15:26Z")
Mewbourne just drilled a horizontal well in section 6-14N-20W. Your earlier lease may have expired. If you did not lease and did not respond to a pooling, then you will get stuck with 1/8th lease. Suggest you contact Mewbourne.
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### Author:  [@MTM2](https://www.mineralrightsforum.com/u/MTM2)
#### Post date: [September 5, 2025, 8:19pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/6 "2025-09-05T20:19:09Z")
Thank you so much. I’ll do that.
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### Author:  [@Candi\_Choumas](https://www.mineralrightsforum.com/u/Candi_Choumas)
#### Post date: [September 8, 2025, 10:27pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/7 "2025-09-08T22:27:34Z")
Can someone explain to me why it is better to take the higher royalty than the higher price per acre? I have a company offering me a lease on my mineral rights. The last time I leased another parcel I have in a different area I negotiated a 200% option on a 2-year lease. This time they only want to offer me a 150% lease option at the 2-year lease. When I try and bring the royalty up to 1/4 or 1/5 then they drop the dollar amount to $500 an acre; at 3/16 it is $750 an acre. Can someone please clarify?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [September 9, 2025, 1:06pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/8 "2025-09-09T13:06:23Z")
Many of us would not want an option tied to a lease because it puts all the power in the hands of the lessee. Competition may be entirely different in three years. Five years is a long time to tie up your acreage. I never go for an option as it gives me no power to hunt for a better deal in three years.
On the royalty bonus, the bonus is tied to the royalty. If you get a 1/8th royalty at $400 bonus, then the operator is thrilled because they get to keep the other 7/8ths, so they will pay you more. If the royalty is 1/4th, then the bonus will usually be half, so $200. The reason that savvy mineral owners want a higher royalty is that the bonus is only a one time payment. If the well is productive, the higher royalty will usually be significantly higher for many years on that well and maybe more wells.
A simple example. You have 10 acres at 1/8th with 640 acre spacing on a one section horizontal well versus 10 ares at 1/4 royalty at 640 acre spacing on a one section horizontal well.
The equation for 1/8th royalty is: 10/640 x 1/8 x 1.00 (100% of perforations in the one section.) A 1/8th royalty has a decimal of 0.001953125. For every one Million dollars the operator makes, you would earn $1953.125. Plus the one time payment of $400.
The equation for 1/4th royalty is: 10/640 x 1/4 x 1.00 (100% of perforations in the one section.) A 1/4th royalty has a decimal of 0.00390625. For every one Million dollars, you would earn $3906.25-so double. Plus the one time payment $200. SO a significant difference in the royalties that really add up over the years.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [December 2, 2025, 4:58pm UTC](https://www.mineralrightsforum.com/t/custer-county-lease-offer/83433/9 "2025-12-02T16:58:48Z")
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