I recently received a lease offer for Section 30-10 North – 08 West. I was offered $1,000 per Net Mineral Acre s, of which I have 4 total. I was curious whether that was a reasonable offer for a 3-year lease with 2-year extension offered for an additional $1000 per acre if the extension was picked up. Any thoughts from the members would be appreciated. Thank you.
Definitely do not allow the 2year option to renew.
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Your offer is tied to a royalty percentage, so that needs to be included or it doesn’t have all the information. Usually first offers are open to higher negotiation. Many of us would want a 1/5th or 1/4 lease which would have a lower bonus. The clauses in the lease are much more important than the bonus amount. If you have never leased before, it would be wise to get a good oil and gas attorney to review the lease as the drafts need significant edits.
Yes, I should have mentioned that there is a 3/16ths attached to the lease.