Sec 29-6N-12W


#1

Receiving offers to lease this and 4 other sections.(Sec 27,4,15 & 9) $200 ac for 3/16 Royalty.Anyone else have any similar offers?


#2

First offers are lower than final offers. Also, if you have multiple tracts, always lease each one on a separate, but identical lease. You can also ask for a multi-tract deal which usually gets you higher prices. Be very sure you have a no deductions clause, no top lease clause, limit your shut in, no extension and only exchange the lease for the check. No 60 day time frame while they flip it to someone else. This offer is low to other leases in the township which range from $250-350 over the last few years.


#3

Thanks very much for your helpful response! I recently signed a lease with the lease- for -check provision but it has been over 30 days since I returned the lease. What exactly is meant by the lease for check provision and when can I expect payment. I’ve signed a 60-business day lease before and will never do that again. I thought I was expediting payment when I specified the check was due on return of my signed lease.


#4

I do not hand over the signed lease without getting a check in return. If you live out of state, you may be able to get a bank, accountant, attorney, etc. to hold the signed lease until the lessee shows up with a check and then exchange. I usually send an email of the copy of the signed lease with COPY DO NOT FILE marked in huge letters on each page so that they have proof of your good faith. I inform the lessee who is holding the lease and where he/she can pick it up. If you hand over a signed lease, they can file it without paying you while they hunt for someone to flip it to. Not optimal for you.


#5

I agree, with M_Barnes. Some lessees try to wiggle off the hook by holding and not filing the lease. They later claim that it wasn’t “accepted”.


#6

Thanks Richard!