Does anyone have any information regarding leasing in southern Colorado county? I have been contacted by a landman recently and would like to hear if others have, what a reasonable bonus offer would be, and just verify some of what he was saying.
Can you give a little more info. Like the legal, bonus offered and terms he offered.
What are the going rates per acre for a new 3-year lease with a 3-year extension in Colorado County, Texas? Is a signing bonus a reasonable request?
Also, they are offering a 20% royalty clause. Is that standard, or is 25% more reasonable?
Any info is appreciated.
Where at in the county are you located? 20% is the starting percentage usually. You may be able to negotiate up to 25% or somewhere between. Typically there is a signing bonus. I’ve seen anywhere from $200 to $1000 per acre. More info about location will help.
Thank you for your reply.
I guess I phrased my question wrong. I meant to ask what is a reasonable amount for a signing bonus.
The location is a couple of miles east of Sheridan. So, I imagine that would be the western part of Colorado County.
No problem sir. There hasnt been much activity in Colorado County, so maybe its the start of more.
The $200-$1000 / acre is what we seen in Northern Colorado / Eastern Fayette Counties. With little activity in your area, I would imagine that would be offering near the lower end.
20% royalty is pretty standard, depending on what type of drilling, conventional vs. non-conventional, you could get more.
Do you mind mentioning what company / Operator is interested in leasing your minerals?
RPM Exploration, based out of San Antonio, TX.