New lease request

Wyoming Mineral Rights Laramie County, WY
1

Hello,

I am new to this since I inherited some mineral rights. I have been contacted by a company requesting to lease part of our holdings. Specifically in Township 14N Range 63W, Section 32. They are offering $100 per net acre bonus. I assume this is negotiable and I am looking for advice on a starting point for the negotiation. The royalty is 15% and term is 5 years with a 3-year option to extend. I am already going to ask for an additional bonus if an extension is requested. Any information on current trends or advice would be appreciated.

Thanks in advance,

William

2

I suspect the offer is on the low end of the scale just to see if anyone will bite. The five year plus three year time frame is way too long for me as it gives all power to the lessee to flip for a higher royalty, etc. I will only lease for three years with no option to extend. Minimum leases in the area should be for 16.67% which is a 1/6th. I see some at 20%. I see many, many old horizontal permits for that section that look like they were not drilled yet. So don’t sell yourself short here.

3

Thank you very much for the information