Inherited mineral rights from my dad this year. Received offer for oil and gas lease from White Star Petroleum. How do I know if the offer is good or not?
First offers can be a bit low to final offers, but this is not the high royalties area. White Star pooled section 24 in 2016 for $175 @ 3/16 $100 @ 1/5th. That is a good starting point. The devil is in the details of the actual lease. You probably will have to negotiate the clauses as you need a depth clause, limit shut in time, a commencement of drilling clause, no post production clause (not an enhanced value clause), no warranty of title, no top lease clause, a Pugh clause, etc.