New Lease in Tollett Survey

I have been notified by a land man that I have mineral rights to 75 acres in the Tollett Survey area of Wood County.

I am very much clueless about how all of this works. I have been sent a lease for $416.00 for a 5 year lease on only 3 acres (not $416.00 each year) and one-sixth royalty provision. Without knowing anything, I thought that this seemed low – and why would they lease only 3 acres? Would the rest of the 75 acres be tied up in this lease for 5 years, also? Anyone know what would be a reasonable offer for a lease in this area?
I could use all the help, advise, etc, anyone can share. Thank you , Linda

It may be that you have a net of three acres within a 75 acre tract. I will not do a five year lease as the time is too long and things may change in the area. Most folks prefer a three year or less lease. To me, a five year lease sounds like a flipper and I would rather deal with someone who will drill sooner. Most first offers I have received have been low, just to see if you will bite. Ask for their 3/16ths, 1/5th and 1/4th rates. Also ask for a copy of their lease (but do not sign it!) The lease will most likely need some negotiations. While you waiting on a reply, read the Mineral Help tab above to get more familiar with what to do and not do. That lease is going to need some work to more in line with your needs. Come back when you ready to work through it. Most folks is Texas prefer a 1/4th (25%) lease if they can get it. Ask who they are working for, who will be the operator, when they are planning to drill, what horizons are they planning to drill, etc. If they are vague, then that tells me that this might be a flipper. Nothing wrong with flipping as many folks have a nice career doing it, but I prefer to get a more competitive price as a mineral owner.