I have inherited the mineral rights to 400 acres of land in Wyoming. This is the section: Sec. 6 T19N R62W
My great grandfather was in the oil industry and grew up during the great depression- he wouldn’t have bought mineral rights on a property without knowing that it was worth something. I have been contacted by a company, Ossidiana Operating, LLC that wants my signature for them to drill 13 horizontal wells, but I haven’t signed anything yet because I just learned about the inheritance and have no knowledge about this industry.
They want to pay me $135 per acre and 10% royalties for whatever they drill.
I would be very appreciative if there is anyone that could guide me in the right direction in terms of knowing if this is a good deal & if I should get a lawyer, etc.
If you have that many acres and 13 horizontal wells coming, you definitely need a good oil & gas attorney to walk you through a very good lease which will likely be very different than the one the operating company wants you to sign. Do not sign anything you do not understand! That lease can hold your family for decades, so it is critical to get it right the first time.
Start with reading the Mineral Help tab above.
You can do much better on that deal. The bonus is not nearly as important as a good lease with favorable clauses for you.
Get familiar with the Oil & Gas commission and website for Wyoming. Learn about the drilling in your area. Read the investor presentations about the operators in your area, not just the one that wants to drill yours. Read everything on the forum and any other royalty groups in Wyoming. NARO is one (National Association of Royalty Owners). There is probably a local Wyoming one as well.
Be careful whose advice you take. There’s no way you’ll get $500 an acre @20% in this area, they will just move onto another one and you’ll be left with nothing. This area isn’t like other parts in converse or Laramie counties. In no way should you sign for 10%. I’m not even sure that is legal.
Each state has its own minimum royalty. You need to find out what it is. 1/8th (12.5%) is the lowest for OK. ND has 1/6th (16.66667%). Mu gut says 10% is too low. Look up the oil and gas rules for your state.