I own 15.1 acres in the Church district located in Wetzel county WV. I am being approached by XTO energy. They are currently offering $500.00 per acre signing bonus and 12.5%royalty after production costs. I have spoke to a neighbor who was offered the same terms. My neighbor is holding out and plans to ask for $3000pa plus 18%. I don't want to be greedy but want to be treated fairly. What should I ask for? Any input is greatly appreciated.
Josh
Dear Mr. Myer,
I have associates in the area. The bonus range is from $1k-$5K per acre, with a common figure of $1350. Royalty rates range from 12.5% to 15%.
15.1 acres does not give you a lot of leverage, but a leasing syndicate with a professional negotiator could well pay for itself in spades.
Failure to look past the bonus money and the royalty percentage is one of the top 10 mistakes that landowners make in the whole process.
Best
Buddy Cotten
What are the other 8?
Buddy Cotten said:
Dear Mr. Myer,
I have associates in the area. The bonus range is from $1k-$5K per acre, with a common figure of $1350. Royalty rates range from 12.5% to 15%.
15.1 acres does not give you a lot of leverage, but a leasing syndicate with a professional negotiator could well pay for itself in spades.
Failure to look past the bonus money and the royalty percentage is one of the top 10 mistakes that landowners make in the whole process.
Best
Buddy Cotten
Mineral Manager