# Lease Offer & Production
**URL:** https://www.mineralrightsforum.com/t/lease-offer-production/70824
**Category:** Robertson County, TX
**Created:** [May 9, 2023, 6:33pm UTC](https://www.mineralrightsforum.com/t/lease-offer-production/70824 "2023-05-09T18:33:11Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@Signola](https://www.mineralrightsforum.com/u/Signola)
#### Post date: [May 9, 2023, 6:33pm UTC](https://www.mineralrightsforum.com/t/lease-offer-production/70824/1 "2023-05-09T18:33:11Z")
Robertson County - received lease offer. What does 1/5 Royalty on Production mean? I have 3.2104115 net mineral acres on 77.05 gross acres. The offer is $500 per net acre. What does that add up to? What am I getting and what am I giving up? Is this a good offer?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [May 10, 2023, 11:13am UTC](https://www.mineralrightsforum.com/t/lease-offer-production/70824/2 "2023-05-10T11:13:17Z")
The royalty is the percentage that you receive from the sales of the oil and gas. So 1/5th is a 20% royalty on your 3+ acres. The operator keeps 80% because they take the risk of drilling and operating the well(s). If you have never leased before, you need to get a good oil and gas attorney to review the draft lease. Most folks in TX would only take 25%. The draft lease is not usually in your favor and you need significant edits to get it to the point of being a “good offer”. The decisions you make now can affect you and your family for decades, so investment in legal advice early is important. The attorney can often negotiate for a better bonus as well.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 7, 2023, 6:33pm UTC](https://www.mineralrightsforum.com/t/lease-offer-production/70824/3 "2023-08-07T18:33:26Z")
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