Should I lease a small parcel in Greeley to Mineral Resources?

David Studebaker · 2014-02-12T20:16:20Z

I am a newbie to mineral rights, so please forgive my ignorance. As owner of a small parcel of land (about 1/2 acre) near 6th Ave and 20th Street in Greeley, I was contacted last year and again about a week ago by Mineral Resources by letter wanting to lease my mineral rights for horizontal drilling. I did not respond last year to their offer of 12% royalties, believing it was too low. Now they are now offering a signing bonus of $300/net acre and a 14% royalty interest with a 5 year term. First, what is "net" acreage and how is "net" acreage different than standard acres? Secondly, and most important: Is this a good deal? It's not a lot of money we are talking about for only 1/2 acre so I don't want to get overly involved for not much gain. Any advice would be greatly appreciated! Thanks.

Colorado Mineral Rights Weld County, CO