Info on lease renewal

Hi guys. Question. There are 3 of us that have had an oil & mineral lease for the the last 3 years it has a 2 year option. It is coming up for renewal/option Jan 3rd. The original company we signed with assigned it ( or sold it) to another company. We have recently been contacted by this company and they want to negotiate a new lease. They want to change it to a 15 year lease and at a lower percentage. I don’t understand these leases so much, my husband recently passed away and the lease was his and 2 family members. I guess my main question is, is a 15 year lease very common? It seems strange to me. Also I was told their reasoning was that oil prices are down. Appreciate any feedback. Thanks

In short - 3 years is normal. 15 years is nonsense. Post your county and state and legal description to get feedback from people with more knowledge of that particular area.

I made a mistake. They want a new lease for 10 years at 1/8 royalty instead of 1/4. Our current lease is 3 year lease with 2 year option. 4k nma bonus. Expires in Jan T24s 36 E sections 29&30 lea county NM

In my opinion, no way on the 10 years and 1/8th. That offer tells me they just want to hang onto it and then flip it to someone else for a higher royalty. I would rather have no lease than a bad lease. The bonus is insignificant in the long run based upon the royalty rate and the actual clauses in the lease. If they never drill, then I didn’t miss out on much, but if they do drill and you are stuck at 1/8th, it is not as good as the higher royalty. Your geology and potential reservoirs are the important factor. Not in a great place, not a great offer. In a good place, better offers.

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