My Father received an offer
Township 10 North, Range 57 West, 6th P.M.
Section 30,:lot 1(36.95) Lot 2 (37.06 E2NW,NE
containing 314.01 gross acres and 10.0000 Mineral acres, more of less
bonus: $150.00 per net mineral acre
Royalty: 1/6th (16.6667%)
Term 5 years
My question, should we be interested in this offer. I'm sure my father knows about some of this but I don't and I want to make sure we are doing the right thing. Please help me understand the pros and cons.
Thanks,
Lana:
You may want to post under the "County Group" section, just scroll down to Colorado and find Weld County. By doing this, you will catch the attention of others who have holdings in that county.
Thank You
charles s mallory said:
Lana:
You may want to post under the "County Group" section, just scroll down to Colorado and find Weld County. By doing this, you will catch the attention of others who have holdings in that county.
Thank you, do you know what companies are out there for us to call and check out what they are offering?
Thanks
tfarming said:
Hi Lana,
Yes. I took a look at the Colo. oil and gas commission permits website and see that there is an apporved location for a well just 5 miles from your dad's land so suggest that he negotiate from a position of strength.
No less than 20% royalty (all Weld county owned minerals are auctioned off at 20% so that is the least that he should ask).
3 year term is more realistic (I think that Weld County leases are 3 years).
I would suggest that a bonus of closer to $500 per net mineral acre would be more in line with the current market.
Anyway... that's my suggestions.
Tfarming
