I am seeking advice from other Borden County mineral owners. I have received an offer to lease several sections within Block 97 and am inquiring as to whether the offer is a reasonable one.
3yr initial period at $200/ac + a 2yr extension also at $200/ac. plus a 1/5 royalty. CR-II West Texas Holding Co. Inc
I realize others in this area may have already made arrangement to accept or negotiate a similar offer and am hopeful they might share their experience with me.
Thank you, Bob M
Bob first of all welcome to the forum and to the Borden County group. First of all I think it would be good for you to read the 6 pages of comment wall in this section. There seems to be a few people in the group with leases in Block 97. I would think you could at least try for a higher bonus per acre, the highest I have seen on this section has been $400. The 1/5 has been about the going rate for royalty. One thing you have going for you is there is a lot of leasing going on in your area and just south of you. Good luck with negotiating your lease.
Richard, thank you for your prompt reply and in welcoming me to the group. I have read the comment wall and realize I am very steep in the learning curve. The discussion on how to access well and pipeline data was helpful, only now I need to figure out where I am on the map. I presume the numbers in the corners refer to “sections”?
It has been suggested that sacrificing the bonus for a more advantageous royalty percentage may be a tactical winner provided anything is ever produced. Has anyone had success pursuing this in negotiation? Bob M
Bob first of all welcome to the forum and to the Borden County group. First of all I think it would be good for you to read the 6 pages of comment wall in this section. There seems to be a few people in the group with leases in Block 97. I would think you could at least try for a higher bonus per acre, the highest I have seen on this section has been $400. The 1/5 has been about the going rate for royalty. One thing you have going for you is there is a lot of leasing going on in your area and just south of you. Good luck with negotiating your lease.
Bob, I have found that you need to play around and experiment with the TRC GIS map finder. I learn something new every day. Do not be afraid to ask whoever is trying to lease from you for more royalty. The highest I have seen is a 1/4 or 25%. They will usually offer a certain bonus with each royalty %. If you have quite a few acres to lease it may be smart to have an oil and gas attorney negotiate your lease for you.