Anyone know a recent bonus per net mneral acre for a 3 year PT with 2 year kicker OGL in northern Upton County, TX along hwy 349 a few miles south of the Midand Couinty line? Thanks for responding.
Like all bonus rates, it varies on where you are and what horizon they are wanting to lease. Have you had them appraised recently? Have you checked the activity around them on the railroad commission website? I always tell clients to take a pause and do some research before they sign the lease. The Landman offering it to you has information you don’t have, so it’s good to educate yourself and find out as much of what they know as you can. Ask them questions about horizons, etc. Ask them questions about how soon they will drill. When negotiating, remember that it’s about more than the bonus money. That lease will bind the property for a long time. Each paragraph matters. Seek professional help if you can. Join NARO and educate yourself. The oil and gas operator has a team of professionals behind that Landman - shouldn’t you have at least one professional behind you?
We have mineral rights in section 104 in Upton County, a bit west from where you are. Lots of new horizontal wells. Ovintiv is our producer and seems quite active in the area.
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HOT area. I would think at least $10K per NMA, maybe more. 25% royalty and tight continuous development (retained acreage) clause.
I’m just glad to see some discussion, even a little at least, on Upton Co.