Hello, I received a question about a lease offer for minerals in the NW4 Sec 28, T-20N, R-25W, Ellis County. the royalty rate was 3/16 and the bonus was $600/MA. I work with operators and leases in Colorado but am unfamiliar with Oklahoma. Is this a fair offer? the royalty seems reasonable, but the bonus is lower than what I am accustomed to. Thank you, Scott
Welcome to the forum!
There are quite a few companies leasing in that township. I see leases filed at 1/5th and 1/4, so always ask what they are offering for the higher royalties. I am familiar with offers in 19N-26W and the offers have been higher there.
If you have not leased in OK before, it would be really wise to get an OK oil & gas attorney to review any draft lease offered. The laws in OK are different than CO, so every word in the lease matters. In my experience, draft leases from lessees are almost always in the operator’s favor and it takes some negotiation to get into a more fair mineral owner’s balance. You especially do not want post production charges.
Hi, Thank you for your reply, it was very helpful. I will take your advice moving forward. Scott
This topic was automatically closed after 90 days. New replies are no longer allowed.