New Lease Inquiry

Comment by Dwight Kent Herauf 1 hour agoDelete Comment

Question for you all, our family land- township 138 North, range 99 W.

SE qtr. sec 22, Sec 27 ALL, SW qtr. sec 28. A lease offer has been made by a brokerage firm, but is $100 less per acre than the previous lease from several years ago. Do any of you feel this is a low-ball offer or is that kind of the normal thing you are all seeing? We were hoping for about the same, but then again like many of you we have had NO lease for about 4 years. Input would be appreciated. Thank you!

There is some older production west of you by a few miles and some from around 2010 seven miles East of you. Terms probably are more important than bonus if you really want a lease because it doesn't look like anyone is stampeding to drill in your area. It's a personal decision whether the lease bonus is enough for you but you need to get terms you can live with royalty % and hopefully no deductions. Mostly I would caution you to make sure you get paid! They may want to get the entire block of leases together before they pay anyone and if that is the case the deal may fall through and they will pay no one. If your bank or a lawyer will hold your lease until the check has cleared, that is the way I would do business, if you can work out an acceptable agreement.

Good advice…sounds like you are speaking from experience