I am new to mineral rights. We have obtained rights through an inheritance. We have received an offer for a lease and we have no idea where to turn to get educated on this process. I thought I start with this forum.
Tributary resources have offered us $1,500 per acre (22.472 net mineral acres).
Part of this agreement states, "payable as 10% of the bonus amount upon signing of the Agreement and 90% balance payable within 30 days of the release of the existing Oil and Gas Lease or filing of a Form 1003 plugging report, whichever comes first." I don't know what this means.
It is stated that this agreement is good for two years and the Oil and Gas Lease, subject to the terms of the Agreement, allows for a three year primary term and 1/5th royalty.
Finally, they are also offering a lease bonus of $1,750 per acre for a three year primary term and 3/16ths royalty payable as described above.
This is all confusing to me. Please advise!!