I am working on a lease negotiation in Petroleum County, Montana and am trying to gain some insight as to the going royalty rate and bonus payments per net acre. Any help would be greatly appreciated.
Rosanna:
Looking at the GIS map, it appears that Petroleum County is a somewhat inactive County thus far in regards to oil and gas developement. Bonuses could be offered in the $100/acre range due to this lack of developement. I would do some research in your area in regards to any recent seismic tests that have been conducted and attempt to learn what interests the company has in this area. I will advise not to negotiate a lease in excess of 3 years in the event that drilling becomes active in particular parts of the area over the next couple of years. The drilling activity is currently concentrated over the Eastern Montana border counties and over the next couple of years, the migration pattern could enter into this area with the drilling of a few wildcat wells in order to test the vicinity. Again, do a little research before signing.
Thank you for your insight and advice Charles, much appreciated!