I’m new to mineral rights ownership and have some new lease offers. A recent bonus offer seems very low compared to others by another energy company on other sections. Are bonus offers negotiable?
Yes, they are negotiable. Success is not guaranteed. Bonus rates are based upon competition in the area. “Low” or “high” is comparative to the local market and to the royalty amounts offered. The lease clauses are a more important factor for long time potential revenue. If you are new, please get advice from a good oil and gas attorney as the draft leases are rarely in the mineral owner’s favor. An investment in good advice can be quite important to your future returns.
Thank you for the information. Greatly appreciated!