Lease offer - Payne County OK

There are 5 of us 2 brothers and 3 sisters that have been offered a 3 year lease agreement on 40 acreas of land in Payne County Oklahoma at $75 an acre,3 year term and 3/16th royality. We have just the mineral rights to the land, my question is the 3/16 th royality is standard offer and a good offer my question is $75 a 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 alot of activity will be going on in Payne County I really do not concern myself with the bonus money the royality term of 3/16 is great as you said and there is 5 of us involved and rather than start a squabble over bonus money it looks like we will be coming together on this beside family is more inportant 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.