I just got my lease for 160 acres in Texas. They told me previous that it was $400 an acre and 24% on discovery. This is divided 12 ways, I get 1/12. The lease I received states it is a 3 year Paid Up Oil and Gas Lease at $400 an acre or $1777.76 at 1/5 royalty in the event of production. Does that mean being a paid up lease that the $1777.76 will be paid X 3(math $400 an acre X 160 $5333.33 divided by 3 = $1777.76)
Yes that should be your bonus do you mind if i ask where your lease is
Lamesa, Tx. Dawson County
No, you got some bad advice. Your bonus check should be $5,333.33 paid up front since it is a paid up lease.
They are paying you for a 1/36, not a 1/12. You're getting ripped off.
I don't really understand the contradictory royalties. I guess I would have to read the offer letter.
It sounds like they offered you 24% and mailed you a lease for 20%.
Dave is correct. Your bonus should be $5333.33
Hey Kim,
we have a lot of land in dawson county leased, where is yoru land, I. E. section, block, T-N, we are in 34/27 T5N, 35/28 T5n and 35/2 T5N, We have 2 producing wells in 34/27, but with the price of oil our checks have gone down to nothing. let me know, see if we are Neighbors.
Marc