My husband and I have mineral rights in Coal County, OK. Could someone please tell us what the going rate is for mineral rights? We do not live in Oklahoma and are pretty much ignorant of the process of leasing but I really don't think that, since there has been some upward movement in the gas and oil section that the prices are basically just pennies per acre.
Just received an offer of $350/acre bonus and 3/16% royalty interest on lease in Coal County, Oklahoma. Newfield Exploration is the operator with plans to drill horizontal well(s). Currenty have mineral interest in Haynesville Shale play in East Texas, but land in East Texas was all leased in the 30’s and 40’s and commonly only pay 1/8% royalty. We have a local oil and gas attorney who has negotiated several new leases, mainly in Louisiana, with bonuses in the thousands and royalties ranging from 1/5% to 1/4%. He suggested we ask for at least 1/5% royalty, which is only 1.25% more than the offer of 3/16%.
Would like to hear from others who are more familiar with the local (Oklahoma) rate.
WE have previously leased out mineral interests in Coal county, OK. With the amount of drilling activity going on right now there is a surplus of natural gas, which, of course, drives the prices down. When we leased the price of natural gas was almost $6.00 per MCF (thousand cubic feet: a standard unit of measurement in terms of natural gas). Now the price is just over $5.00 per MCF. We got $300.00 an acre bonus with a 3/16ths royalty at that time. 3/16ths is pretty standard for the industry, so I wouldn’t quibble over that. You can, however try to negotiate a slightly higher per acre bonus, but be cautious about this, you don’t want to scare off a potential leasee. I would suggest a bump up of maybe $5.00 per acre at the most. You didn’t say how many acres you have but if a significant acreage, that $5.00 per acre could amount to quite a bit. I am not an attorney, so I have no real experience, other than my own in pricing of potential leases. Another thing you mention is that they are wanting to drill, so it sounds like they are definitely interested. This may also work in your favor. You can check with the Oklahoma Oil and Gas Commission (google them for a website) for listings of recent drilling activities in the area you have these mineral rights. This will give you a leg up when dealing with potential leasees. That’s about all I have, good luck
Victor Menard Oregon