Dawson County Lease June 2020?

[Susan_McBrayer]

What is a good lease rate for Dawson County currently? Our mineral rights are in Loving County School Lands, Section 271, Metes and Bounds: 191.13 acres, more or less being all of Labor 24, League 271, Loving County School Lands, Dawson County, Texas.

We have been offered $400 per acre and 22 percent royalty. Last couple of leases were $400 and 20 percent royalty. I thought I remembered reading on this forum that there is a lot going on in Dawson right now and that the going rate is 25%.

Any insights from you folks who know this business?

[Tyler_M]

I would ask for at least a 1/4 royalty with 500 mineral acre bonus and continuous drilling clause and Pugh clauses. That will protect your property. For term, I would look for a 3-year with 2-year option to extend.