We have been offered $125.00 per acre signing bonus for a 3 year contract and a 3/16 royalty for 4 acres that we have mineral rights to in Lincoln County, Oklahoma. Is this a fair offer? By reading some of the discussion on this forum I am thinking that the 3/16 royalty is standard but I think that the $125.00 per acre is low. I am thinking maybe I should counter offer with $250.00 per acre? Any advice is welcome.
Karen, where in Lincoln County are you located?
Karen, Who is offering to buy, depending on where you are located, there are a few operators active in Lincoln County.
Depending on your location, your strategy could leave over $750 per acre on the table and thousands of dollars of royalty per acre in the hands of others rather than yours. Do yourself a favor and get a handle on the potential of your acreage before submitting a counter proposal. The minerals and fair deals will not go away.
Blue Dolphin Energy leased our mineral rights for 3 years and now that is up and they want to lease for another 3 years but are offering a lot less than our last contract.
Section 03, Township 15 North, Range 06 East, Lincoln County, Oklahoma.
Section 03, Township 15 North, Range 06 East, Lincoln County, Oklahoma.