I believe my lease is expired with Anschutz and would like to renegotiate terms. I recently purchased the acres for quite a bit per acre and hope to get back some of my investment with a new oil lease. What is the going rate paid per acre for signing a new lease? Also, I believe the old terms were 20%, but I’ve heard people are getting more. What is the best way to negotiate a higher percentage? The land is part of a group holding over 300 acres in the Township 35 Range 71 West Section 19 Lot 1 and 2 E2NW/4, W2NE/4 and Section 18 W2SE4. They told me that they have plans to start drilling next year. How do I view the plans for drilling and to see how many wells are planned? I’m very new to all this and just trying to understand things better. Any help would be greatly appreciated.
Our acreage in the same tract is leased by Chesapeake, and they exercised their option for two years last year.
Hello Olive,
My cousins and I are part of that 306-acre tract. It has been over a year and a half since we negotiated, and the drilling/price of oil situation was pretty bad, so we only got 20% royalty. You should try for a better royalty. You might start with counter offering 25%. Also, if you are very new to the oil and gas leasing business, definitely get an attorney who knows that business to review your lease before signing. Was it an independent landman who told you they plan to drill next year? They do have a bunch of drill permits, but that is a typical come-on that landmen use to try to get you to sign quickly. Anschutz has a really good Turner formation next door to us, so they probably will eventually get around to drilling us, although with over 1500 drill permits and only 1.5 drill rigs operating… it may be quite a while. You might try using the Wyoming oil and gas conservation website for more information—just google it. Good luck on getting good terms in your new lease.