We were offered a 3 year primary $1200-1400 lease bonus, with 3 yr option to extend and 20-22% royalty. Henry Vollentine Survey, A-479, Lavaca County, Tx. Is this a good offer or should we negotiate? We are new to this, so any information you can provide will be very helpful.
Someone more familiar with Lavaca can tell more as to bonus amounts, but in general, you want the highest royalty you can get. Most of us prefer 25%. I never agree to an extension as the power remains with the lessee to renew or leave you hanging and I want a competitive price three years later if there has not been drilling.
If this is your first time leasing, it is very wise to invest in a good oil and gas attorney to review the lease. Most draft leases are entirely in the operator’s favor and need quite a bit of strategic editing.
Where are you located in the Vollentine survey? This makes a big difference on pricing…are you close to the Lavaca river ?
Also how many acres do you have ? this is also figured in… thanks
3-4 miles from river