TOP LEASE. Elsewhere in the forum I have read that top leases are not a good idea, but the money offered is good and I have to stop and rethink this one. $2,000 per mineral acre and 1/5 royalty payable only when the company is successful in getting the commission to release a section under a non-productive contract to the petitioning company. Good for 90 days and then free. Original leasing company does not have to be paid back. Any comments please. I have not seen top leases discussed on the Blaine board.
What is this top lease? I have mineral interest in a section that is minimally productive and another that is sitting not even hooked up or producing. Does top lease pertain to any of this?
FYI
Some leases are going for $8,000 an acre in Blaine Co., usually 3/16th but a few at somewhat less and 20%.
How do you find out what $ leases are going for?
Sorry to somewhat misspeak. I've not see LEASE offers above $3,000 but I have seen MINERAL SALES of leased properties with offers up to $8K... The top prices are for land that does not yet have a lease (except if 20% - then they seem to think that pretty much the most a company will give) A 1/8th lease will bring substantially less. Some mineral buyers wish to participate in the wells which explains why they want to buy unleased minerals. But others are wanting the passive income and 3/16th or 20% leases are preferred over lower royalty.
You can get sales info in the courthouse, but you need to talk to landmen or lessors to find out what they got or negotiated - the companies rarely disclose their lease amounts unless you are an "insider" with them.
The lease amounts are usually kept secret, but you can get a good idea by finding the pooling amounts of the sections near you. They are pretty close to the highest amounts. If you have a specific S-T-R in mind, I can look it up for you (if there are any).
What about Sec 29 14N 10W in Blaine County. My paperwork says that lease ended in 10/15, but the BIA hasn't put it back up for auction,as of yet. They're understaffed or something. Thanks.
29-14n-10w is in Canadian County.
I meant Sec 29 14N 11W. My mistake.