We got an offer for 1/8 at 1000 per acre. 3 year w/2 year ext. 3/16 at 750 and 1/5 at 500. From redballexpress. New to this. Is this fair? Should we sign and at what rate in your opinion? Is this average? 23-09N-10W
Welcome to the forum.
Many mineral owners would prefer the higher royalty. Two year extension is not acceptable for me. Implies a long holding time and too much can change in 5 years.
Would advise getting a good oil and gas attorney to look at the lease as the draft versions are rarely in the mineral owners’ favor and require a good bit of editing.
Use the search magnifying glass to ask about other’s opinions on that particular agent. I would not lease with a company that is not well known or easily findable.
If a bank draft is included in the paperwork, be cautious. The old bank drafts are bygone… I would never sign a bank draft these days as the language on most of them extends the payout time frame by months. I have my accountant or attorney hold my signed lease and will not hand it over until the check clears the bank. No money, no lease.
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Does anyone know about Red Ball Express? Is it legitimate? I tried to find a website and had no success.
You can use the search icon above to hunt for other threads with their name. Personally, I would not lease with a company that was not easy to find. Not all will have a website if they are small. They are listed as forming in Edmond, OK as of 7/8/2022.
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