Lease Offer Feb 2019

#1

We’ve received a lease offer this week from CGS Operating, LLC. Our mineral interest is the north half of block 36, section 25, T5 N. We were offered a leasing bonus of $450/A and a 20% royalty interest. We think this should be raised to 25% since they are requesting an option.

We were wondering if others were receiving lease offers and if this was a good offer.

0 Likes

#2

We recently received a similar offer from CGS not too far from here. Has anyone else been contacted by them? $450/acre for 20% royalty seems fair according to my son who works in the industry.

0 Likes

#3

We refused all offers because he did not offer 25% royalty. If you study documents on courthousedirect.com, you will see that 25% royalty offers are common on those OGLs most recently posted. We told him we would not accept anything less than that for which we last leased, which was $500/A, 2 y option and 25%. He eventually offered either $550/A, 2 y option and 22.5% or $500/A, 2 y option and 23%. We did not accept these offers.

0 Likes

#4

Peggy,

Whats the email address of the person at CGS you were talking with? We have been cleaning out all of our letters and seem to have misplaced that one! I must have put it in the trash pile :frowning: Thanks for your previous response by the way!

0 Likes

#6

I posted telephone number and then deleted. Should never have posted a telephone number on the internet. Perhaps you should send me a way to contact you directly.

0 Likes

#7

Karen,

Where is your land located? Received similar offer and want to see if it is fair or not.

0 Likes

#8

League 285. How about you?

0 Likes