New Lease Brazos Texas

[Laura222]

Hello! Just had a question about a new lease agreement we received today. We are total newbies and have inherited land in Brazos county Texas. The exact wording of what we received is this: “This is a 9.0486% undivided mineral interest on 9 different tracts that total 124.085 acres, which gives you 11.227986 net mineral acres. On behalf of Apache Corp I have been authorized to make you the following leasing offer. Lease Bonus: $750 per net mineral Acre totaling $8421.00 total bonus. It’s a 3 year term with a 2 year option to extend for $5614.00 the Royalty Rate is 20%.” I’ve tried to follow some of the steps suggested on this website and just have a couple of questions.

1. Should I ask for a lower royalty rate with no added cost deducted?
2. The area that we’ve inherited is in the James Gray Survey a-210. How can I find if there are any active wells in that area?
3. In anyone’s opinion does this seem like a fair lease bonus or should I request more?

Thanks in Advance for any help you can provide, this is all very complicated.

[AimeeHess]

Welcome to the forum, Laura!

The Texas Railroad Commission website has GIS maps that can show you what other wells and permits exist in the vicinity of your property.

As far as terms, the lease is a complex document that you may need to live with for decades. You are best served by obtaining the services of an oil and gas attorney to review the lease. They can tell you if the terms are fair for a lease in your area. They can also review the fine print that, over time, has a significant impact on the amount of income you will receive from the well. In many cases, you may be able to get “no post production cost” terms without having to agree to a lower royalty.