I received a call yesterday from company wanting to know if I had signed contract and mailed back yet. Seems like they are pressuring me. I have a very small stake in these mineral rights as 8.0 acres is divided between 90 heirs. They are offering me a $400 bonus and 15% royalties and they said they did not need everyone to sign on to starting drilling. I do not know if this is true but their hurry up attitude kind of throws up a red flag to me. Any advice would be great.
If the 8 acres is divided amongst 90 individual leases that yields about .088 acres per lease. Multiply the .088 by $4500 equals just under $400. I think $4,500 per net acre is a reasonable offer for a bonus on smaller acreage. You might try instead to get a slightly higher RI percentage of 16-18% in the negotiations. Under West Virginia law I believe they need only 75% of leases signed in order to proceed with drilling operations. Hope that helps and good luck.
Thanks Dome. Greatly appreciate your help.
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