We have been offered $750.00 per net mineral acre bonus consideration, for a three (3) year term Oil and Gas Lease, with a two (2) year option to renew, and providing for a 3/16ths royalty for N/2 SE/4 SW/4 LYING EAST OF THE CANADIAN RIVER of Section 07 of 06N-01W of Cleveland County, Oklahoma, by RedSky Land, Inc. Is this a fair offer? Thank you so much for your kind assistance.
I moved this over to Cleveland County where it will get more views.
As a first pass, you do not want a two year option to renew, you need to ask what they are offering for 1/5th and 1/4th. Are they working for BP? If so, I just read a “standard lease” (no such thing) from BP and it was not in the mineral owner’s favor. Will need some negotiation.
Thank you for responding and moving your comments to Cleveland County, I’ve wondered why there is a lack of conversation in this county. We too have recieved offers from Red Sky, I must say from the numerous confusing calls from this firm makes me think they lack organization.
Most of the drilling focus has been farther west. Slowly moving into Cleveland. I just received a request this week myself.
We have rented our sec.32 for the past 4 years, unforunantely not for the 750.00/acre we recieved for sec.19 and 18.
Your section and range is key to the bonus amounts. There are many 32s.
Thank you so much for your response and assistance. Your advice is invaluable, and thanks for moving my question to Cleveland County. Have a wonderful day.
Thanks for the heads up. I am getting ready to talk to them.
Hi, I am a newbie and would like to know more about what is in favor of the owner in these leases. I do not know what to look for or avoid. Thank you in advance
I would suggest that you read the Mineral Help tab above and also the post for inexperienced owners. Information for Inexperienced Royalty Owners
Not much in the first lease they offer you will be in your favor. You will probably need to strike through several common clauses in the lease and then need to add an Ex A to fix other things in the lease and add items that will be helpful for you. Examples are no post production charges at all, limit the shut in time and charge more per acre, commencement of drilling, depth clause, do not warrant title, no option to extend lease time, no top lease clause. Get a bit informed and then come back and ask questions.