The oil company is offering $200 per net mineral acre, 3 year paid up oil and gas lease with 3/16ths royalty. Is this a fair, good offer?
Go to the Garvin County group (under groups) with this question. You will also need to be more specific about location. township, range, section.
According to where the minerals are located. Parts of Garvin county demand high bonuses and a 1/4 interest.
Don't know the oil business. What is bonus and interest? Educate me if would please.
Thank you
Tom Ed Moore said:
According to where the minerals are located. Parts of Garvin county demand high bonuses and a 1/4 interest.
Bonus is the money they will pay you to lease your land until they drill. Three years is the amount of time the lease will run. Three years is normal for a “primary” lease a lot of places. Sometimes the o&g company will want an extension of two years (or more) after the primary. The market being as volatile as it is, the extensions are less popular these days. Royalty of 3/16s used to be the norm, now 1/4 is not unusual and of course preferred by lessor. As was suggested, if you will go to the top of the page under groups and join the Garvin County, OK group, those people will be able to tell you more precisely if your offer is reasonable as they will be more knowledgeable about the area. Hope this helps. Linton
Where are your minerals?