What can/does happen if a mineral royalty owner and a landman do not come to an agreement on a proposed lease? This would be a scenario when the mineral rights owner turns down the offer, etc. This is in Texas with EOG
It is my understanding that it varies by state. What state are your minerals in?
I am no expert, but here is my best memory of the info I gathered a year or so ago from a couple of attorneys, one in NM and one in TX. We own in NM and TX.
In NM, if a mineral owner holds out and refuses to lease, he risks that the lessee can force him into what i call a "statutory" lease. I can't remember how the attorney described it, but my takeaway is that the mineral owner could end up getting 1/8th royalty, or maybe he said average royalty, and average of the bonuses paid to other owners. In NM, it's better to make a deal.
In TX, the mineral owner can't be forced into a lease. If the Lessee, i.e. the party wanting to get a lease from you, has a keen desire to be able to drill, the mineral owner has a strong bargaining position. [My fear would be that I could drive such a hard bargain that the Lessee just decides to skip the parcel where I own, and move on to other tracts.]
Please don't take this as a definite answer. Hopefully someone else will post who is more of an expert.