Understanding minimal interest

Hi There, Today I received a call from a land manager. My family has oil and gas mineral rights in Monroe County Ohio. He offered us $100.00 each for the lease and 17% royalties. He said we have minimal interest at .0005%. Thats why he is only offering $100. He said the royalties won’t pay much. But the papers I receive will explain more in detail. Could someone explain how this works and any advice please. Thank you, K. Wadlewski

Wait until you get the papers and find out how many acres you have. Go online to the Ohio oil and gas division and find out what is going on in your area. I moved this to Monroe Co, OH for you as folks there may have a better idea of the activity. Read the Mineral Help tab above. See who the operators are in your area. Local newspapers may post permits. Look them up online and see what they are telling their investors. I do not have acreage in Ohio, but it my other stats, the first offer is usually low. I always ask for more royalty. You need to know what your state statutory minimum is. I usually ask for 1/5th or 20%. Depends if you are in gas territory or oil territory for the bonus amounts. Don’t sign anything until you understand the lease. It will probably need negotiation to get the terms more in your favor. They don’t start out that way. Welcome to the forum and come back and ask tons of questions!