My sisters and I received an offer for mineral rights in Yoakum County, Texas, we each own 26.7 net acres in SW/4 Section 613 Block D of the John H. Gibson Survey. The offer at this time is $1000/acre and 20% royalty and I’d like to know if this is reasonable. They are in quite the hurry so I’m a little skeptical. There is a solar lease on this property with drill pad space provided and the agent that called didn’t think it would be a problem.
I don’t know about bonus for this area but you want to get 25% royalty. What is just as important are the other terms of the lease. With that many acres, it would be worth your while to engage an “oil & gas” attorney. You need to have a rock solid “No Cost” provision, Pugh clause, continuous development clause, etc. Don’t use their lease form.