Question - what’s the fair price per acre for this lease? The East Half of the Southwest Quarter (E/2 SW/4) of Section 44, Block M, EL & RR Co. Survey, Dawson County, Texas, We were offered: • $400.00/acre bonus consideration • 25.00% royalty • 3 year term • 2 year option to renew at the same bonus rate
$400 per acre is better than the offers in Section 77 of $300, so I would sign the contract.
Thanks, very helpful information.
Can you counter with $450 per acre? If they say no, you can take their offer. The reason I like your offer is because they are offering 25% royalty. Much better than the CGS (hope I remembered that correctly) offers others have described of 20%.
Good idea, you are helping me think outside the box. Thanks.
I’ve described our experience with CGS on this forum. Their initial offer was $400/A, 20%. Their final offers were $550/A, 22.5% or $500/A, 23%. We refused to agree to any offer without 25% royalty. To us, up-front money did not matter; we considered the royalty percentage offer most important. I think their 25% royalty offer is wonderful. I still would see if they would offer a larger signing bonus.
Keep us posted on the forum!
Jo54: If you do not mind telling us: Who made this offer to you? Was it CGS Operating LLC? Thank you.