A company (not named) leased 630.2 acres in Leon County Texas from our family. They did not drill and the lease expired. They are back offering a lesser amount, which follows: $400/ac and 1/5th royalty for a three year lease.
Can anyone share the going lease rates in Leon Co, Tx?
Thank you for your consideration.
Yesterday I spoke to a landman buddy of mine who is familiar with current activity in Leon. The numbers you mention in your post are consistent with what he told me. As with all leases in a particular area, bonus and royalty can and will fluctuate depending on the size (amount of net mineral acres) and previous history, and of course oftentimes the ability of the landowner to give things some time, as opposed to signing the first deal that presents itself. Quarter royalties for instance are not unheard of in this area, but not for all properties.
Have you ever heard the old saying, “All politics are local”? Well, as I often tell people, oil and gas land leasing is like politics. It’s local, very local - meaning your property can be valued differently than your neighbors. It’s not always that way, but certainly can be.
Follow the rules of good negotiating: give it some time, say what you mean and mean what you say, discover all the intelligence you can about the area, talk to neighbors, use online resources. Best of luck.
Kenny, thank you for your response, Sir.
We have similar situation. Offer is now at $500/ac and 1/5th royalty for 3 year lease with them having rights to pay same amount/acre and lease for 2 more years.
I think we should get several mineral owners together and try to get the price up a bit. Not sure how much we can move it up with the economy the way it is right now.
i have recieved a lease offer for 300.00 acre plus 1/5 royalty in leon county. this is my first offer should i ask for more
I have mineral rights in leon county, as per your conversations I have been dealing with a representative of a big oil company, the last time I sighed a lease was in 2005 at that time the beginning offer for a lease on a 80 percel in leon county was $250. I ended up a month later with a $600. per acre lease, my lease is up in Jan. 2011, the same oil company is offering us a new lease even before our old lease is up, their offer 7 weeks ago was $250. per acre then it was $350. 3 wks ago they rasised it again to $450. and said it was the last offer, this week from the same oil company there is a offer of $600. a acre and they also said this was the last offer, I just started shopping my lease options on my property, I will keep you informed on how much we are being offered but at this time it is $600. a acre with 1/5 royalty, three year lease with a two year option. We would like to stay in the loop on oil leases in leon county because of our out of state situation. Please get back to us with any conversation you might have.
Thank You Mr. Griffin