# Lease Option Offers Percentage or Fraction?

**URL:** https://www.mineralrightsforum.com/t/lease-option-offers-percentage-or-fraction/70733
**Category:** Stephens County, OK
**Created:** [April 29, 2023, 5:28pm UTC](https://www.mineralrightsforum.com/t/lease-option-offers-percentage-or-fraction/70733 "2023-04-29T17:28:39Z")
**Posts on this page:** 3
**Page:** 1

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### Author: ![Sharon\_Conoley](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/sharon_conoley/32/17842_2.png) [@Sharon\_Conoley](https://www.mineralrightsforum.com/u/Sharon_Conoley)
#### Post date: [April 29, 2023, 5:28pm UTC](https://www.mineralrightsforum.com/t/lease-option-offers-percentage-or-fraction/70733/1 "2023-04-29T17:28:39Z")

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We are receiving lease offers on a new well in Stephens County, Oklahoma. Some of the offers read a certain bonus amount with a fraction royalty for a term of 3 years. Ex. $2000.00 per acre with 1/8th royalty for 3 years. Other offers read a bonus amount with a percentage. Ex. $300.00 per acre delivering an 81.25% net revenue (no term). Could someone explain the difference to me? Thanks for your help.

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [April 29, 2023, 8:40pm UTC](https://www.mineralrightsforum.com/t/lease-option-offers-percentage-or-fraction/70733/2 "2023-04-29T20:40:25Z")

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Actually both. A 1/8th royalty is a 12.5% fraction. A 3/16th royalty is a 18.75% fraction. (they keep 81.25% revenue.). They are a bit complicated to read. In Stephens, I always ask for their 1/5th option and 1/4 option. Also, if you have never leased before, it would be very wise to get a good oil and gas attorney to review any draft lease. The draft leases are usually not in the mineral owner’s favor and need some significant edits. Never sign over a lease without getting paid that day. I do not agree to a draft payment. They can slow down payments by months.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [July 28, 2023, 5:28pm UTC](https://www.mineralrightsforum.com/t/lease-option-offers-percentage-or-fraction/70733/3 "2023-07-28T17:28:43Z")

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