I received an offer to lease my share of a property in Lea County NM. Can anyone explain to me what the terms mean, and how I can determine if it's a fair offer?
As interesting (but maybe irrelevant) backstory - before I got the letter I did not realize that I owned anything in NM. I (and several cousins) inherited some active leases in Texas from a great-aunt ~5 years ago, and apparently (I'm guessing) these non-active properties in NM were also part of her estate and that the paperwork was lost when her husband died 20+ years prior.
80 Gross Acres, 4.44 Net Mineral Acres
Township 9 S, Range 34 East, NMPM Section 11: N/2NE/4
1. 5 year primary term
2. $250 per net mineral acre bonus
3. 3/16 Royalty to be paid on production of Oil and Gas
1. How do I evaluate if the offer is fair or not?
2. what do the terms of the offer mean?
3. if ownership is split between several parties, do we all have to agree to lease before they can pursue this?
4. What is typical lead time between an offer like this and actually drilling and begining production?
5. Why now? Assuming my uncle bought these rights 25+ years ago, why the sudden interest? Particularly when prices are still pretty low.
TIA for your help!