Our Lease offer from Trinity suggests $100 NMA 3 year lease for 3/16th Royalty. The Permit is approved, is it common to only get $100? Why do they need 3 years if they are starting to drill now? When they are in production, the lease is automatically extended, right? Atoka County, Section S/2 of 15, 22 & 27-2N-12E. Is it possible to get a lease with Royalties paid before maintenance & production costs? We’ve never had one get to the point of drilling so any thoughts on lease clauses would be most welcome. Thank You, Barbara Spencer
We have a free of costs addendum added to any lease. This prevents the operator/payor from gouging your royalty interest. It’s always good to negotiate. Never go with the first offer. Typically, the lessee will negotiate with you. How many acres you have will usually determine how willing the lessee is to negotiate. This is my experience. A three year lease is most common on the majority of leases as well.
What is the date on the lease offer? What section are your acres in? There are already three Kiedaisch wells in 22/27. So I am a bit confused as to why you are not already getting paid. Those wells have been online since 2022. If this is a cleanup lease because they missed you, then you need to get an attorney to get you the best lease you can because these wells are good! Did you inherit since 2020? Those sections were pooled in 2022 for $350 @ 3/16ths, so the current offer is low unless there is a completely new well in a completely new reservoir. Yes, you can can “no post production charges” lease and you need about 15 other good clauses.
Need a bit more history here before you sign anything.