My relatives own 120 nma in 13N 6W, and recently received a top lease offer of $3K/ac. and 1/5th royalty. Can anyone provide some input as to what lease terms in or near 13N 6W have been recently?
That number is higher than I have seen for poolings at 1/5th in the recent past in 13N-6W, but top lease can be dangerous. I never do them. They can tangle up your title. I just wait until the current lease is over and let the market price be the new guide. Sometimes a top lease traps you in a low rate and some times not. I just want my leases free and clear of any entanglements.
I attached a review of top leases that I found helpful.
261-AnOverviewofRecurringandRelatedIssuesInvolvingTopLeasing.pdf (210 KB)