# Magnolia Oil Leasing Question
**URL:** https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342
**Category:** Oil and Gas Leasing Help
**Created:** [July 12, 2019, 12:52am UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342 "2019-07-12T00:52:01Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@Russell2](https://www.mineralrightsforum.com/u/Russell2)
#### Post date: [July 12, 2019, 12:52am UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/1 "2019-07-12T00:52:01Z")
We have recently been contacted by Magnolia Oil about leasing some acreage in Karnes County. They are proposing a contract where the mineral owners get 18.75% royalty. I thought the standard was 20%. Does this sound correct? Are they a reputable company?
---
### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [July 12, 2019, 7:15pm UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/2 "2019-07-12T19:15:19Z")
There is no standard lease and no standard royalty. Usually offers start out low and it is up to the mineral owner to ask for more bonus and more royalty. In Texas, I would always prefer 25% royalty.
---
### Author:  [@SouthTexDos](https://www.mineralrightsforum.com/u/SouthTexDos)
#### Post date: [July 13, 2019, 12:17am UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/3 "2019-07-13T00:17:24Z")
Any chance you know what Abstract or Survey your property is located in to give us a better idea? For starters, yes, they are reputable, but 18.75% is a low ball offer.
---
### Author:  [@Russell2](https://www.mineralrightsforum.com/u/Russell2)
#### Post date: [July 13, 2019, 2:20am UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/4 "2019-07-13T02:20:54Z")
I’m not sure of the abstract, but it’s just east of Falls City in Karnes County. They are only using 35 acres in a unit of approximately 50 acres.
---
### Author:  [@SouthTexDos](https://www.mineralrightsforum.com/u/SouthTexDos)
#### Post date: [July 13, 2019, 2:57am UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/5 "2019-07-13T02:57:31Z")
Y’all are probably in the A. Hernandez Survey, A-4. Do you know if your acreage falls into Magnolia’s Foo Unit? That permit was approved two months ago. I’m familiar with that area of Karnes, and your property is in a great location. You should ask for a solid price per acre and bump that royalty to 25% (in my opinion).
---
### Author:  [@Russell2](https://www.mineralrightsforum.com/u/Russell2)
#### Post date: [July 13, 2019, 10:43am UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/6 "2019-07-13T10:43:15Z")
No, it’s not in that unit, and I had a typo. It will be part of a 250-acre unit.
---
### Author:  [@TwoShoeBeagie7](https://www.mineralrightsforum.com/u/TwoShoeBeagie7)
#### Post date: [July 13, 2019, 10:01pm UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/7 "2019-07-13T22:01:47Z")
Get 25% or walk away. If they won’t go to 25% then they’re not reasonable.
---
### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 7:26pm UTC](https://www.mineralrightsforum.com/t/magnolia-oil-leasing-question/48342/8 "2025-01-11T19:26:40Z")