New to forum AND lease negotiations… Lease received from River Run Energy Partners Section 32 T2N R3W - anyone hear of them? (Can’t find consistent info on web). Got them to up the bonus to $700 per acre… it is a 3 year lease with a 2 year extension for 3/16ths … any thoughts? … thanks in advance
Welcome to the forum.
Personally I never do an option to extend. Three years is my max. In my experience, the first draft lease will not be in the mineral owner’s favor. There are clauses that need to b e negotiated. If this is your first lease, suggest you get legal help to get the best possible lease. Especially if the company does not have a track record. There are other companies leasing in that section that are offering 20% (1/5th). Ovintiv, Scissortail Midcon to name the two most recent in filings.
Thanks for responding. Yes - I am learning the leases seem to heavily favor the lessee (signer’s beware). I saw that you mentioned elsewhere not to extend options past the primary term. This is all new to me - appreciate your input… I intend to sign up for the course here - looks like I would learn a lot.
Also, don’t deliver a lease without payment and beware of drafts (they look like checks). See this discussion: https://www.mineralrightsforum.com/t/is-an-order-for-payment-simply-a-draft-by-another-name/23514