Received a lease offer for term of 5 years at $35 per net mineral acre and 13% royalty. The land is in Lincoln County Township 15 south. I have received several calls from landmen from different companies over the last couple of years but this is the first lease offer for the mineral rights I've received. It seems very low. I read an interesting article in the NYT, June 4, that said offers came in very low to persons inexperienced in negotiating with these companies. Many potential lessees apparently band together to negotiate better deals. I am wondering if there are other persons who own land near mine who have been tendered offers?
Thanks for your reply. My grandfather homesteaded the land under which my family's mineral rights lie...almost a hundred years ago! We retained the mineral rights when it was sold 70 years ago and we've been keeping the taxes up ever since. I think I will wait to see if we can get a group of adjacent owners together, then we can hire a lawyer to go over the leases, maybe get a better deal. That's what a group did in Pennsylvania and they got a way better deal and some protection of the land from pollution as well. This is, pardon the pun, breaking new ground for me.
Rich Geissinger said:
M. Jean Gilbert,
I recently leased my mineral rights, Lincoln Co CO, Township 17 South, Range 55 West of the 6th P.M., Section20: E 1/2.: 80 Net Acres of 320 Gross Acres
My offer was close, but not enough above yours, to cause you concern.
I have paid tax on my mineral interests since 1975... $10 -12 yearly.
To date, I have received $5.6 K in lease incentives.
In the past, I have received ridiculous offers to buy or lease.
Hope this helps.