I have mineral interest in section 10 11N 60W. The current oil & gas lease is due to expire later this year. We have and offer from the current lease holder to renew. The offer is for $300 per acre for 3 years with an option to extend 2 additional years for another $300 per acre. There hasn't been much activity in this area until you go a few miles west near Grover or a few miles south. I would appreciate any information on lease values in this township.
I didn't find a lease in 10 on my data base so maybe it wasn't recorded. But I did find that 2 of the major players that were left out of the major Wattenberg Field development took permits nearby in 2017. There are also enough old wells that penetrated the Niobrara in your section that the really good geologists have a good idea of the geologic potential. I'd let the lease expire if I were you and then negotiate a new one better suited to the owner and horizontal drilling technology later. Chances are that your current lease is not written in your favor.
Gary L Hutchinson
Thanks for your input. Sam
Thanks for your input.
I don't have any data points for leases to fee landowners but I checked the Weld County Government site and Contex Energy (I believe this is the leasing arm of Conoco Phillips) lease County owned acreage in Section 26 11N 60W for $625/acre with $2.50/acre delay rental and 22.5% royalty. That said, the differences between a county lease and a paid-up lease (no annual rental) that you may be presented with are likely significant but it is a data point to consider.
In addition to what has already been said, I would consider hiring a qualified attorney to review any paperwork you receive to help negotiate the most favorable lease for you.
Thanks for your research effort and the information provided.