Hughes County 6-6N-10E 120 acres

I am in receipt of an offer to lease my minerals in Hughes County 6-6N-10E. The lease reads 120 acres. However the lease bonus letter says that I have 2.0 net mineral acres and I have been offered $75 per acre for a total bonus of $150. I have never seen a lease bonus for two acres with a lease for 120 acres. Does this make sense?

Yes. The 120 acres should represent the legal description gross acres. The offer is for the 2.0 net acres that you own under the 120 acre tract.

That should equal out to a 1/60th mineral interest under the entire gross tract of 120 acres.

The common language in leases is to use the gross tract acres. You will be paid on your net acres.

The terms and clauses on your lease are so much more important than the bonus. Almost all of the lease clauses are negotiable. Most offers come in at 1/8th or 3/16ths, but always ask for what they are offering at 1/5 or 1/4 and make sure that you understand the lease clauses and what they hold you and your family to. The draft they start out with in most likely not in your favor.

Bonuses are a one time event. In my view the lease terms and royalty is more important. If $150 is probably not a game changer in your finances so don’t be afraid to walk away if you don’t like the terms. It may be better to get $0 bonus and a 25% royalty provided that the lease terms are also good.

Thank you Todd. I’ll need to research further as prior leases my mother signed indicate I have more than 2 acres.

Thank you for your response. In reviewing prior leases on this section the net acres are different. I need to do further research to make sure the net acres are correct before negotiating terms.

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