We are about to enter negotiation on our mineral rights, and would like to hear what a good lease might look like. Our previous one, which has since ran out, was for 1/8 production on a 5 year lease. I don’t remember what the bonus was off the top of my head. We have rights in four different sections in Niobrara County, WY. What would be a good deal for all involved on this lease coming up? There is a well on one section that they want to produce. Any help on how we should best go about this would be appreciated.
Get a really good attorney and have a separate lease for each section
Bumping this up. Anyone else have any input on lease rates for this area?
Is an attorney really a necessity? Thought?
Mike,
You may have an opportunity for some long term income from your mineral rights. Don't rush into a lease until you fully understand what is going on in the area geologically and exploration wise. Then, figure out how your minerals fit in with the play. Roxann Eddington is on the right track with multiple leases but with land in 4 sections you should find the best operator (not leasing company) and work out a "drill to earn" lease(s) that will help both parties in the long run. Your situation should be valuable to a good industry partner looking beyond flipping leases. Don't tie up all your land for a quick buck or you will regret it in the long term.
Read some of the discussions from this forum and the regrets of leasing without understanding the business..
Mike said:
Bumping this up. Anyone else have any input on lease rates for this area?
Is an attorney really a necessity? Thought?