# Lease term question
**URL:** https://www.mineralrightsforum.com/t/lease-term-question/34757
**Category:** Dawson County, TX
**Created:** [October 7, 2018, 12:14am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757 "2018-10-07T00:14:54Z")
**Posts on this page:** 18
**Page:** 1
### Author:  [@edenise](https://www.mineralrightsforum.com/u/edenise)
#### Post date: [October 7, 2018, 12:14am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/1 "2018-10-07T00:14:54Z")
Can someone tell me if $400/acre, 5 year lease with 1/5 royalty sounds like a fair offer? Thanks!
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### Author:  [@john\_cundieff](https://www.mineralrightsforum.com/u/john_cundieff)
#### Post date: [October 7, 2018, 12:42am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/2 "2018-10-07T00:42:43Z")
Five year leases and 20% royalties are 1950 vintage stuff. Ask for a three year primary with a two year option and a 22.5% or 25% royalty. You’ll get it.
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### Author:  [@edenise](https://www.mineralrightsforum.com/u/edenise)
#### Post date: [October 7, 2018, 11:00pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/3 "2018-10-07T23:00:23Z")
Thanks for the advice.
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### Author:  [@Cole](https://www.mineralrightsforum.com/u/Cole)
#### Post date: [October 7, 2018, 11:18pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/4 "2018-10-07T23:18:08Z")
Saw your question about this lease. Do you mind if I ask where yours are located and who is offering? I own some in Dawson County, and they are about to expire. Wondering if I will be getting offers soon.
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### Author:  [@Cole](https://www.mineralrightsforum.com/u/Cole)
#### Post date: [October 7, 2018, 11:18pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/5 "2018-10-07T23:18:44Z")
I keep getting letters in the mail for some property in Pecos, haven’t leased it yet. Offers aren’t as high as I would like.
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### Author:  [@edenise](https://www.mineralrightsforum.com/u/edenise)
#### Post date: [October 8, 2018, 3:34pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/6 "2018-10-08T15:34:50Z")
Section 25 in Dawson County. Proto Land Services. They are working with Mosman Operating.
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### Author:  [@Willard\_rogers](https://www.mineralrightsforum.com/u/Willard_rogers)
#### Post date: [October 9, 2018, 2:19am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/7 "2018-10-09T02:19:30Z")
Good evening, What block? Also T\_N should be 3 or 4 or 5, that is important to find the value.
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### Author:  [@edenise](https://www.mineralrightsforum.com/u/edenise)
#### Post date: [October 9, 2018, 3:29pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/8 "2018-10-09T15:29:10Z")
Good Morning, The Block is C-41. I’m new to this, what is T\_N? Any advice is really appreciated!
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### Author:  [@Clint\_Liles](https://www.mineralrightsforum.com/u/Clint_Liles)
#### Post date: [October 9, 2018, 5:41pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/9 "2018-10-09T17:41:45Z")
Dawson County Section 41/Block C41/A-904(A is for Abstract)
Denise: Denise/Willard in this case there is no Township involved. Denise your minerals are located in the far Northern part of Dawson County not far from the Lynn County line. On the GIS(Geographic Information Survey) Map I find no production or activity in the vicinity of Section 41.
GIS Map of Dawson County Section 41/Block C41/A-904:
CLICK ON MAP TO ENLARGE
Clint Liles
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### Author:  [@edenise](https://www.mineralrightsforum.com/u/edenise)
#### Post date: [October 9, 2018, 6:07pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/10 "2018-10-09T18:07:21Z")
The property was in a 5 year lease, that has expired and never developed.The company that contacted us is interested in exploring this area. Hopefully this will work out.
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### Author:  [@John\_B\_Tipton](https://www.mineralrightsforum.com/u/John_B_Tipton)
#### Post date: [October 13, 2018, 12:04am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/11 "2018-10-13T00:04:14Z")
I agree with Mr. Cundieff: 3 year primary lease with a 2 year option to renew, at 25% royalty. That extra 5% royalty used to be the norm, and it could add up to a large payoff to you in the long term.
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### Author:  [@edenise](https://www.mineralrightsforum.com/u/edenise)
#### Post date: [October 13, 2018, 12:24am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/12 "2018-10-13T00:24:48Z")
Thanks, I really appreciate the advice.
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### Author:  [@Kim1](https://www.mineralrightsforum.com/u/Kim1)
#### Post date: [October 13, 2018, 1:39am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/13 "2018-10-13T01:39:38Z")
With an offer of 22.5%, is it worth holding out for 25% or would you accept the 22.5%? Do you find that most companies will up the offer to 25%?
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### Author:  [@Ralpr](https://www.mineralrightsforum.com/u/Ralpr)
#### Post date: [October 13, 2018, 2:53am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/14 "2018-10-13T02:53:40Z")
25% is pretty much standard - I’ve not accepted anything less for a RI.
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### Author:  [@Kim1](https://www.mineralrightsforum.com/u/Kim1)
#### Post date: [October 13, 2018, 4:13am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/15 "2018-10-13T04:13:45Z")
Thank you, Ralpr. I appreciate the information.
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### Author:  [@ARFoster](https://www.mineralrightsforum.com/u/ARFoster)
#### Post date: [October 24, 2018, 11:32am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/16 "2018-10-24T11:32:03Z")
Lease acreage is (depending somewhat on exact location) was going for around $5,000 per acre 3 years ago. 3 year, 25%.
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### Author:  [@ARFoster](https://www.mineralrightsforum.com/u/ARFoster)
#### Post date: [October 24, 2018, 11:32am UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/17 "2018-10-24T11:32:57Z")
(Addendum) in Reeves County, Permian Basin.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 5:43pm UTC](https://www.mineralrightsforum.com/t/lease-term-question/34757/18 "2025-01-11T17:43:54Z")