My wife has 30ac of 360ac inherited rights in sec 20-5n-2e. We have received an offer to lease at 100ac at 3/16. Is this reasonable for area? Offer was from UDX, a very small company. anyone know of any other companies that might be interested in this area? Thanks
Sec 15 pooled for $150 3/16, so you might be able to get a bit more, but maybe not. No huge horizontal drilling here. Ranken Energy is also in the area. Not sure if UDX is leasing for them.
Thank you so much. We may contact Ranken and see what they say.
If you are brand new to leasing, I suggest you read the Mineral Help Tab above. The general lease that they will offer you is not in the mineral owner favor. When you get closer to actual leasing, come back for help on the terms. You do not want ANY post production charges, need a depth clause, limit shut in time, need a commencement of drilling clause, do not want an extension clause or a top lease clause.
We have been reading the posting and will definitely investigate the various clauses. Thanks again.
Beware of Delivering Lease Without Payment:
Failure of a company to pay a lease bonus is a theme that has been raised in this forum far to often. Below are a few discussions on the topic. It is always best to exchange a lease for a check at the time of the transaction. This may not always be possible because of distance. In such cases it is probably better to have an escrow company or attorney to hold the lease until the consideration is paid.
Sometimes companies file leases without payment of bonuses.
There have been cases were companies take leases but never file them. They return the leases later stating that they were never funded by the company. In the meantime, the mineral owner cannot sign with another company.
It is much easier to prevent the issue than to remedy it after the fact.
Below is a sample of Nightmares:
Good post Richard-hope the mineral owners pay attention.