Good morning I am new to the forum. I currently received a lease offer from Antero Resources for leasing 37 gross acres and net 0.08326 net mineral acres. Offer is $300 bonus and 15% royalties.
How do I know what to counter?
Hi @Skennedy they are saying that you only own 0.08326 of a mineral acre. The $300 signing bonus is due to the size of your parcel and is pretty much the minimum they will offer. You can ask for 18% royalty without deductions, but Antero is not offering leases without deductions any longer. They will not sign anything unless you pay a portion of the transportation fee’s. Just being realistic, you don’t have much to negotiate with.
Thank you very much.
The bonus isn’t as important as the royalty rate, especially with a small interest. I would however, recommend you push for at least an 18% royalty rate.
That offer is bottom line. You have a small interest so it’s hard to bargain unless you are sitting on a “Motherload” tract that the company needs to finish their wells. Best i can give you is do lots of reading and lots of research. You can drive yourself crazy with this mineral rights stuff. Nancy Mosley and myself can attest to all the work that can be put into leasing and such. There are some knowledgeable folks on here that can help. Listen and learn. The percentage of royalty should be in the neighborhood of 18 to 20 percent. Gross at the well head cuts out all the post production cost that eat up your share of the royalty. Thats what we settled on. There are items in the lease that should be deleted and some that should be added. This info pertains to everyone dealing with a company wanting to lease your mineral rights. There will be those that contribute on here that will give you some of those items. I am presently retired from the mineral stuff because i get frustrated and a headache when i think about Antero. Lol
1 Like
Do we ever see any royalty payments? Thats the question I cant get answered