Offer to lease

Oil and Gas Leasing Help
1

Beacon Land Management sent an offer to lease from Price River Energy in Carbon County, Utah. We have 280 acres.

T13S R8E, Section 33, W/2 NE/4, SE/4 T13S R8E, Section 34, S/2 S/2 Term 3-year primary, 2-year extension, Primary Bonus: $25 per net Mineral acre, Option Bonus $10 per mineral acre, Royalty 16.5%

Is this a fair offer? I’ve read about getting an upfront bonus payment, is that included in this offer? This has been in the family for a long time and I was thinking nothing would ever happen. Obviously, I’m very naive to the process. Thank you for any suggestions you may have.

2

Price River does have some gas wells in sections adjoining Section 33. Difficult to say whether it is fair, but there is very little activity for the area. Call Beacon and start negotiating on the royalty first since the bonus is not significant.

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