I received a letter with a lease offer of $250 per net mineral acre with a 3 year primary lease, and a 2 year option. It provides a 3/16 royalty as well. There aren't any other fees or anything mentioned. The property is in Caddo Co., OK S34-7N-10W.
Janice,
I suggest you join the Caddo County Forum Group and ask the question to the County Group. They will surely respond to your question.
Clint Liles
I'm a bit surprised you even received an offer, as there hasn't been many leases filed of record in your immediate area lately. Most are to the north, and while those are paying more, I don't think $250/acre is a bad offer for your immediate area currently. That said, there's usually room for negotiation, especially if the offer came unsolicited and is the first you received from these guys. I'd check out the Mineral Hub website's Oil and Gas Leasing Tips Blog entry prior to agreeing to anything. I've put some good negotiating tips ON there that could help you ensure you get a decent deal.
Even if they won't budge on price I would still give their offer some consideration before refusing it entirely. I would also make sure a depth clause and no-deductions clause was included in any lease I signed (at a minimum.) These are fairly common and most lessees will agree to them.
Frederick M. "Mick" Scott CMM, RPL
Thanks for the information. I will certainly do more reading before signing the lease.
I was offered $600 per net mineral acre for Oil and Gas Lease providing for a 5 yr term and 3/16ths royality for 80 acres
Section 23 Township 7S Range 1E
What seems to be going on in that area. As this is first offer it sounds like they are serious. Offer from Heller Oil, Inc out of Ardmore. Anyone else working this area?