Mitchell County, TX - Oil & Gas Discussion archives

Rebecca, you did good getting that clause in your lease, and Ed, you are correct about the royalty being most important. You should all demand at least 25%. Think about this: why would you lease for a 25% royalty if you get a very small bonus when you can possibly join in as a working interest and get 100% of the proceeds after payout and a risk penalty? Of course, this depends on how many acres you have but works well when, say, you own 1/4 of minerals under a large tract.