My 85-year-old mother has been approached to extend her five year lease for one year with an offer of $500/acre (she has 20 acres) and 3/16 royalty. The location is:
Township 153 North, Range 100 West, 5th P.M.
Section 20: SE4SE
Section 28: SW4NW4, NW4SW4
Section 29: NE4
Is this a reasonable offer? If not, what would be a reasonable offer?
Thanks
Joe
Hi Joe, I am a mineral owner as well and always looking for information about leasing. The offer $500 per acre for one year is a good price. The 3/16 royalty is the going rate or higher from what I have heard. Who is the oil company that is making the offer? I would be interested to leasing some minerals in Burke co. ND.
Thanks, Dale Walsh 701-220-9811 dwalsh500@gmail.com
Oasis Petroleum
Joe , I think the question is have you got a good lease to extend ? When the lease expires you could add or delete something from the lease. I am particularly speaking about any charges you agreed to have taken out of your royalty for conditioning gas, as they could be significant to you. Costs add up. In one case I have noticed my brother gets a larger check with a 16% cost free royalty than I do with a 19% lease royalty with costs. I think you could get something added or deleted in an extention also but you would have less clout than with an expired lease. Good luck.
