There are 5 of us, 2 brothers and 3 sisters, that have been offered a 3 year lease agreement on 40 acres of land in Payne County, Oklahoma at $75 an acre, 3 year term and 3/16th royalty. We have just the mineral rights to the land. My question is the 3/16th royalty is a standard offer and a good offer. My question is $75 an acre a good offer?
no.
What then is a good offer?
Ralph,
$150 is the average bonus for Payne County, other than that they are offering you great terms. There has been a lot of leasing activity in Payne County lately because of the shallow oil wells, that may make it a little tough to get them to negotiate. There have been over 500 leases filed in the past 2 weeks alone.
Thank you for the information Tim, looks to be a lot of activity will be going on in Payne County. I really do not concern myself with the bonus money. The royalty term of 3/16 is great as you said and there are 5 of us involved and rather than start a squabble over bonus money it looks like we will be coming together on this besides family is more important to me.
Tim Metz said:
Ralph,
$150 is the average bonus for Payne County, other than that they are offering you great terms. There has been a lot of leasing activity in Payne County lately because of the shallow oil wells, that may make it a little tough to get them to negotiate. There have been over 500 leases filed in the past 2 weeks alone.
Tim,
Where do you find the currently leasing activity (filings) you mentioned in your reply. I just inherited the mineral rights on a tract in Payne Couny (Section 9 Township 20N) and was able to find all the documents online of the drilling history. I was interested in the information on current lease activity.
Thanks
Tim Metz said:
Ralph,
$150 is the average bonus for Payne County, other than that they are offering you great terms. There has been a lot of leasing activity in Payne County lately because of the shallow oil wells, that may make it a little tough to get them to negotiate. There have been over 500 leases filed in the past 2 weeks alone.
Hi Tim,
I just got an offer for a $202 bonus with 3/16 royalties in Payne County. Do you have any more updated information about whether that’s a fair deal? I looked at the GIS map of the county and it looks like it is densely populated with wells.
Tim Metz said:
Ralph,
$150 is the average bonus for Payne County, other than that they are offering you great terms. There has been a lot of leasing activity in Payne County lately because of the shallow oil wells, that may make it a little tough to get them to negotiate. There have been over 500 leases filed in the past 2 weeks alone.