I am new to the world of mineral rights. My family has received a leasing offer for oil and gas from Lincoln Oil and Gas. We own mineral rights in Logan County, CO. The offer is for $75.00 per acre, 1/8 royalty, 5 yr term with option to extend another five years at same acre price. Can someone please advise me on this offer. I have been told Logan County has had a lot of activity lately.
Yes, Logan County has been very busy lately. You should look at the County pages under "Groups" and then "County groups" for Logan County under Colorado. You might repost under that page, and it is usually helpful for members if you post your section, township, range.
The information is for general information purposes only. This should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided.
First I would never agree to lease that ties up your land for 5 years and absolutely not the 5 year extension at same rate. If your county is busy then the $75 is low and so is the 1/8.
Tell them you want 3 year lease at $200/acre, no extension and 3/16 royalty. See what happens!
Get on the county group to check with your neighbors first.