# OGM Lease offer
**URL:** https://www.mineralrightsforum.com/t/ogm-lease-offer/78665
**Category:** Carter County, OK
**Created:** [December 11, 2024, 8:28pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665 "2024-12-11T20:28:44Z")
**Posts on this page:** 13
**Page:** 1
### Author:  [@Wes\_62](https://www.mineralrightsforum.com/u/Wes_62)
#### Post date: [December 11, 2024, 8:28pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/1 "2024-12-11T20:28:44Z")
I recently received a lease offer from Todco Properties for a 3 year 3/16 lease in Section 17, Township 3S, Range 1E for $600/acre. Has anyone else received an offer in the same area? Does this seem like a fair offer?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 12, 2024, 9:03pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/2 "2024-12-12T21:03:15Z")
I always ask what they are offering for 1/5th or 1/4 as I would rather have a higher royalty. Looks like Casillas is planing horizontal wells in the area.
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### Author:  [@Wes\_62](https://www.mineralrightsforum.com/u/Wes_62)
#### Post date: [December 13, 2024, 8:07pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/3 "2024-12-13T20:07:23Z")
Thank you for your help. What would a reasonable trade-off be for a higher royalty vs a higher bonus rate?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 13, 2024, 9:27pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/4 "2024-12-13T21:27:42Z")
General statement:
The bonus rate difference for 3/16ths versus 1/5th is only going to be in the hundreds of dollars or so with a one time payment.
If a well is successful, then royalties at the 1/5th could be hundreds to thousands of dollars higher than 3/16ths over the lifetime of the well or wells. FAR outweighs the bonus difference.
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### Author:  [@Bob77](https://www.mineralrightsforum.com/u/Bob77)
#### Post date: [December 14, 2024, 6:01pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/5 "2024-12-14T18:01:03Z")
Wes, that’s a fair offer and seems to be the going rate in the area. Regarding the other posts, the difference between a 3/16ths OGL vs 1/5th upfront is 0.1875% vs 0.20% or about a 6% difference. Guessing the company will only offer you around $450 an acre for the 1/5th though. So if the wells were to generate 30 million, using 10 acres to make it easy at 3/16ths, that’s 0.1875 x 10 / 640 = 0.002929 interest, so around $88k over the lifetime + $6k signing bonus = $94k. At 1/5th, that’s 0.20 x 10 / 640 = 0.003125 interest, so around $94k over the lifetime + $4500 signing bonus = $98.5k.
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### Author:  [@Wes\_62](https://www.mineralrightsforum.com/u/Wes_62)
#### Post date: [December 16, 2024, 5:23pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/6 "2024-12-16T17:23:59Z")
Thank you for your advice and help. The landman I am working with has agreed to a 1/5th interest and the 600/acre bonus. What specific things should I look for in the lease agreement?
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### Author:  [@Bob77](https://www.mineralrightsforum.com/u/Bob77)
#### Post date: [December 16, 2024, 5:36pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/7 "2024-12-16T17:36:15Z")
Ask them for a depth clause, Pugh clause, and no deductions clause.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 16, 2024, 11:37pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/8 "2024-12-16T23:37:59Z")
Would be wise to get an attorney to review an lease as the clauses can hold your family for decades. The draft leases are hardly ever mineral owner friendly and need quite a bit of negotiation on about 20 different clauses.
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### Author:  [@Wes\_62](https://www.mineralrightsforum.com/u/Wes_62)
#### Post date: [December 17, 2024, 10:36pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/9 "2024-12-17T22:36:13Z")
Thank you for all of the advice.
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### Author:  [@Bryan\_Oldham](https://www.mineralrightsforum.com/u/Bryan_Oldham)
#### Post date: [December 19, 2024, 11:23am UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/10 "2024-12-19T11:23:46Z")
My attorney is suggesting to add a “commencement clause” in addition to the Depth, Pugh, and Gross proceeds clauses.
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### Author:  [@Wes\_62](https://www.mineralrightsforum.com/u/Wes_62)
#### Post date: [December 30, 2024, 8:43pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/11 "2024-12-30T20:43:57Z")
Thank you all for the valuable insights. My next question may seem silly, but how do I go about finding a reputable oil and gas attorney to review the lease agreement? The area I live has little/no oil and gas drilling so the choices are very few. I made some calls, but cannot get anyone to return my call.
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### Author:  [@Pat\_O](https://www.mineralrightsforum.com/u/Pat_O)
#### Post date: [December 31, 2024, 11:20am UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/12 "2024-12-31T11:20:30Z")
I have had good experience with Luke Munson in OK City.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [March 11, 2025, 8:29pm UTC](https://www.mineralrightsforum.com/t/ogm-lease-offer/78665/13 "2025-03-11T20:29:03Z")
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