Lease for Well Proposal S28-T7N-R2W, McClain County

[Becky_Paysnoe]

My siblings and I have received an offer from BP as follows:

• Lease/Assign interest to BP for $600/net mineral acre, 1/8 royalty
• Lease/Assign interest to BP for $500/net mineral acre, 3/16 royalty
• Participate in drilling by paying in advance our share of drilling costs with mandatory election to participate in the terms of the Pooling Order when issued.

Is this a fair offer for what is going on in that area? (This is basically the same amounts that we leased it for 3 1/2 years ago which lease is now expired.) Can we negotiate for more since we know they are about to drill?

Thanks for the help as well as all you do here! Becky P.

[M_Barnes]

Becky, I moved your post over to the McClain county Category. The Oil and Gas Leasing Help is for the whole country and very generic. You will probably get more views over on the McClain Category.

PS. That offer is pretty close to the going rate. Ask what they are offering for 1/5th. Don’t do the 1/8th. Make sure you do not sign that first lease offer as it will probably need some negotiation on clauses and an Ex A to protect your rights better.

[Becky_Paysnoe]

Thank you! I thought I was in the McClain county area - so appreciate the help!