Sigrid:
In regards to bonus amounts, I will hazard a guess and say $2500/acre or more depending on your negotiation power. Again, I think your power would be much greater with an expired lease. In my opinion, the most important factor in the lease is your % royalty as opposed to the bonus/acre amount. Also, the “pugh clause” and cost free transportation clauses are very important but operators will most likely negotiate these items with tricks such as allowing a free transportation clause but lessen your % royalty amount. This is just an example on how they deal and that’s why you must not be in a hurry and allow the negotiation process to play out with all parties. As you stated, don’t take the first lease package but make sure that the package is the final offer. Just say, will get back with you at a later time and continue to build your offers. When you feel satisfied with a certain offer, then take action to lease. These are your minerals and lease them on your timetable. Keep in mind, many mistakes have been made by a mineral owner under pressure conditions. Good luck in your negotiations.
Sigrid Weber-Ward said:
Charles:
Thanks so much for your reply and information. I will certainly strive to do my homework to try to know what should and shouldn’t be in a lease. Needless to say, it’s hard not to want something to happen asap, but the old saying, good things come to those who wait. Any idea what bonus amounts are currently being offered? I did learn from the first lease not to accept the first offer after the fact unfortunately. Had a friend in Texas that is a lawyer and another that is a wildcatter here in Texas that looked over the original lease from 5 years ago and all they told me was that it was a good lease. Again, thanks for the info.