First, I want to thank all of you that have replied and continue to post great information to help educate us neophytes to the mineral rights industry. I wanted to post a follow up to my original post. Before I had a chance to formally respond to the 3/2 lease offer of $500/NPA bonus and 20% royalty, Fredonia submitted a revised offer of $750/NMA bonus for the first 3-years and $400/NMA for a 2-year extension, all with the same 20% royalty. After getting feedback from my original post, reading related posts on this site, and talking with a family friend who was Texas landman I am going to be submitting a counter proposal to Fredonia with the following terms.
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Lease Term: 3 years fixed (no extension option)
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Bonus: $2500/NMA
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Royalty: 25% net/cost free
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Drilling commitment in writing
As this is our first lease offer in years, I would appreciate any feedback on whether my tactic is too aggressive or a good starting point for negotiations. Thanks in advance.