I have received an offer from an oil company to lease my acreage for a price which is below the US Lierle average for bonus and royalty rates. From a strategy standpoint, am I better off countering with the midpoint of the Lierle average or with the requirement that the offer be within the range? Thanks
what is the lierle average ? i have never heard of it.
US Lease Price Report - go lierle.com
joe spence said:
what is the lierle average ? i have never heard of it.
Mr. Schumann, there is no one size fits all in lease negotiations. Production close to your property can be a fair indicator, especially if you are surrounded by production. I think getting competitive offers is a good idea, the more the better. If someone else leases you and participates in any well/s, the operator makes nothing off your acres. If I was in virgin territory and the offer was low, only one company interested and I wasn't in terrible need of the money, I would wait. If you are leased and the operator drills and gets production, that's the deal you will have untill production ceases, that might be several wells and 20 to 100 years down the road. There is much information to be had in the county groups, you will find them under where it says groups at the top of the page. The more you know the better the deal you are likely to make. Make sure you get paid if you execute the lease, don't accept drafts, order of payments or bills of exchange, which are just unenforceable IOU's. Don't let the executed lease out of your hands before you have cash you can spend, because the lessee could record your lease and never pay you and you would have to sue to clear your title. Good luck with your Texas minerals.
Is there a way to get the information without spending $270.00 to join. Looking for information in Texas-Houston County. Have not seen or heard of US Lease Price Report till a couple of hrs ago.
Dear Texas54,
To me, this is a waste of money. It comes out bi-monthly, so when you receive the information, if you are in a hot area, the information is worthless.
In my home county, they report an average bonus of $200 per acre. It is hard to buy in my home county for less than $300 an acre, with top being $500 per acre.
What a rip.
Thank you Mr. Cotton have been following your post and you have helped educate me.
There is no way any one get get an average lease price report from a company that I know of. What about when companies have been leasing for 6 months to a year in a county and local area's within a county, such as is happening in Houston County, Texas and the leases are not filed at the Court House? How can a company report what the price is. This is hardly ever on the lease. All I can say is WOW?
How about a new state law requiring companies to file a lease within 30 days of a mineral owner signing the lease? This would "smoke" some of these people out of misleading mineral owners.
Texas54 said:
Thank you Mr. Cotton have been following your post and you have helped educate me.