sandridge has offered me $100.00 per acre lease and 1/16 if drilled. I have 53 mineral acres in sumner county,ks. does any know if this is a fair amount or should I be asking for more?
I would not lease any minerals for those terms. I would ignore and wait to see what happens in the area. The way you worded it, you get nothing if it is not drilled. Hell no! Personally I have never heard of anyone leasing for 1/16th unless it is 1/8 with a 1/16 override.
my mistake,it would be 3/16. it's 160acre track and I own 53.3 of it. the other two partys that also own 53.3 have already signed for that amount. am I stuck now? or can I still try for something better?
Danny,
After a short study of Sumner County activity, you may be looking at the wrong parameters. You may be studying pennies and ignoring future dollars. SandRidge is a well financed operator with very good geologists and Sumner County is dotted with directional and horizontal wells that are very expensive to drill and complete but have a high success ratio. Make an appointment with the company in your town and see if you can find out what their plans are for your area through a SandRidge geologist. Then consider what you want for the future. You may want a well that will deliver you hundreds of thousands of dollars in well protected royalty than quibbling over a few thousand in lease bonus.
It could very well be that the primary term of a lease is as important as the royalty structure in setting a lease bonus. Sharing in the drilling risk may be a consideration that would get you 6 to 10 times the revenue over a lease. Those decisions are, in my opinion, far more important than lease bonus in your particular county. Only you know what is best for you but with minerals in Sumner County, you owe it to yourself to look way past the lease offer terms. You can't find a bird's nest on the ground if you aren't looking for one.
The previous advertiser is correct in his thinking, besides $100 and a 3/16ths is a going rate now. A couple years ago they'd have given you a lot more in bonus but the play is not yielding as well as they first hoped. Previous to this play you'd have gotten an offer of $20 and less than a 3/16ths.
$100 an acre seems really low still. Is there any more data to support that figure?