We received a lease offer on our 260 acres. Section 50 block F. It seems pretty standard with the 25 percent royalty and a 1500 dollar per acre sign on bonus. I guess my question is, are there any red flags I should look for in the lease? And do you think there is negotiating power to ask for a higher sign on bonus?
what state and county?
Well, I was under the impression I was posting in the Texas/Winkler County forum, but I guess I was mistaken?
I moved it over there for you.
Suggest you consult with an oil and gas attorney given the amount of your acreage/minerals.
Also consult the GLO map viewer and look for recent leases of minerals in which the State of Texas has an interest like this one](http://www.glo.texas.gov/ncu/SCANDOCS/archives_webfiles/arcmaps/webfiles/landgrants/PDFs/1/1/1/9/1119121.pdf) that is dated 2/2018 with a bonus of $1500 and a 25% royalty.
Hints On Negotiating An Oil And Gas Lease might also be helpful.
Thanks for the info!
Dear Shawni, The reason we say consult an attorney is he knows the clauses you need to add, like the Pugh Clause that tells the oil company they have to use all your land, they can’t cherry pick the best of your 260 acres. Another clause that an attorney used was Expressed Warranties. I had Chesapeake tell me that land that I didn’t have on the inventory was indeed our families land. So we signed 25% out of the Hole, $5000 per acre bonus. 3 years no option, they paid each of the 3 years the same $5000 per acre Bonus, then my Aunt died and her Bank ran the title again, and found someone else. However since we had the express warranties Clause, we didn’t have to pay back any of the $525,000 Bonus paid, back to the oil company. So you see you must have an attorney because we’re talking big Money here, and you don’t want to leave any of it on the table. God Bless