This is the first time I’m handling an OGL on my own. Paladin Land Group on behalf of FEM offering $150 per net mineral acre at 1/8 or $100 at 3/16. But no signing bonus, is that normal? I’m assuming the 3/16 is the best offer? Thank you so much for any input.
If the margins are skinny, then the top royalty rate frequently does not have a bonus. The numbers you have are the signing bonus for a paid up lease. Hughes is mostly gas, so the lease offers are low. Be aware that the first lease draft you are offered is usually not in the mineral owner’s favor. It is wise to get legal counsel to get a better lease. You do not want to pay any post production charges.
Rosie the dollar per acre you mentioned is the signing bonus.
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