Oil and Gas Leasing Rate

[MooreGas]

Does anyone know the NMA going rate for Moore County, TX, for a gas well?

Was offered $50 NMA, 5 years, 3/16 royalty (by the landman with authority from the Oil and Gas Co and we are almost positive this is a lowball first offer)…my family is the majority in this field, and the discussion is to go back to the landman and negotiate it to $100 NMA, 3 years at 1/5 royalty rate and see where it goes from there. This was a producing well that was shut-in and the previous Company wants to go back in…we don’t want to be greedy…just get what’s fair for the area.

Any help or insight would be appreciated!

[M_Barnes]

I do not know that area, but I would never lease for more than three years and would try for 1/5th or 1/4.

[MooreGas]

Thank you, Ms. Barnes, and hope all is well! I was hoping you’d reply as I had been lurking on the forums for a bit and had previously read your responses :).

[M_Barnes]

I would suggest that you get a good oil and gas attorney to review the draft lease. They woud be able to make suggestions for improvements and protections for you.

[MooreGas]

Thanks for your advice!