I am looking for any recent lease information regarding signing bonus and royalties. Have 200 acres with an offer but unfamiliar with what has or is being offered in the area,
If we are talking about drilling in the Austin Chalk, I would guess most landowners get from $100 to $250 an acre. Last I heard, they were offered 1/4 to 1/5 royalty. That’s in my area which is southwest Washington County.
Don, this is very helpful. We have an offer of $200 signing negotiated so far and 3/16 royalty (which we were told was not negotiable). I think these guys are speculators, not an oil/gas company.
We got 1/5 royalty for our Washington county mineral rights in 1984. 3/16 doesn’t sound very good.
Jeanne Spinn Kendrick said:
Don, this is very helpful. We have an offer of $200 signing negotiated so far and 3/16 royalty (which we were told was not negotiable). I think these guys are speculators, not an oil/gas company.
I would say EVERYTHING is ALWAYS negotiable. Unless they have been given specific limitations from the company for which they are leasing. To me, that’s doubtful. Browsing around this site also can get you great information for making a more informed decision. At the end of the day, I would want to be leased. So, if you want a lease, you have to decide at some point to trust someone. Unless you have a former lease with specific terms that make you comfortable leasing again under those terms, I would hire an oil and gas lawyer.
Jeanne, just sent you a friend request with my contact details. We are also in WA county and have a few current lease offers. Feel free to contact me to compare notes.
DJG said:
Jeanne, just sent you a friend request with my contact details. We are also in WA county and have a few current lease offers. Feel free to contact me to compare notes.
I have a farm in central Washington Cty and received a lease offer of 175 bonus and 3/16 royalty from a broker. What is the current market for mineral leasing in the area?
Jeanne,
The broker has raised his lease offer for our 100 acre farm to $200 bonus and 19% royalty. Have you been able to get better terms?
We've seen all our neighbors sign terms of $100/acre and 3/16th approximately 18 months ago. We've held out and seen the royalty rise to 20% and $225/acre. We want a full 25% royalty. We're also interested in talking to other drilling companies as we've only gotten interest from same firm that has secured our neighbors leases.
Does anyone have a feel for the recent O&G leasing activity in Washington County (near Brenham)? What are the typical lease terms currently being offered in this area? Any experience out there with EnerVest Operating, LTD or Englemann Land Services?
Did you get your 25%?
elic lincoln said:
We've seen all our neighbors sign terms of $100/acre and 3/16th approximately 18 months ago. We've held out and seen the royalty rise to 20% and $225/acre. We want a full 25% royalty. We're also interested in talking to other drilling companies as we've only gotten interest from same firm that has secured our neighbors leases.
We did. In fact, we negotiated these terms:
- 25% royalty
- required them to stay off our property. If they want to drill under the property from neighboring lands, that's okay.
- no water rights given (big issue for us)
- 2 year term
- about $250/acre bonus
It took a while to get our terms (about 14 months) and being the only holdout helped.
Tomas Brussard said:
Did you get your 25%?
elic lincoln said:We've seen all our neighbors sign terms of $100/acre and 3/16th approximately 18 months ago. We've held out and seen the royalty rise to 20% and $225/acre. We want a full 25% royalty. We're also interested in talking to other drilling companies as we've only gotten interest from same firm that has secured our neighbors leases.
Thanks Elic. What company leased your acreage?
elic lincoln said:
We did. In fact, we negotiated these terms:
- 25% royalty
- required them to stay off our property. If they want to drill under the property from neighboring lands, that's okay.
- no water rights given (big issue for us)
- 2 year term
- about $250/acre bonus
It took a while to get our terms (about 14 months) and being the only holdout helped.
Tomas Brussard said:Did you get your 25%?
elic lincoln said:We've seen all our neighbors sign terms of $100/acre and 3/16th approximately 18 months ago. We've held out and seen the royalty rise to 20% and $225/acre. We want a full 25% royalty. We're also interested in talking to other drilling companies as we've only gotten interest from same firm that has secured our neighbors leases.