i have a piece of land close to great southwest pkwy, and pioneer pkwy in Grand prairie Tx. i have been approached by couple of companies to sign a natural gas and mineral right lease. i wanted to know what signup bonus is fair to ask. secondly, for 25% royalties what expect in dollar amount. ???
please help.
According to the web side http://www.seactx.org/index.html of SEACTX over 26k$ per acres (=> 4-6k$ per lot). The 25% royalities can up to 50$ per lot and month in the beginning. But many of my neighbors have signed with Petra Casa landmen for Harding Oil / Chesapeake and received only 400$ to 600$ per lot. What signing bonus have the companies offered?
Peter
NOT LEGAL ADVICE
Dear Alex,
My best advice is for you to talk to as many of your neighbors as possible. Some won’t want to discuss their lease terms, but most will. You can also try looking for images of their leases at the Dallas County Clerk’s Web site, and find the royalty amounts specified therein (you won’t find the bonus payments specified in the leases). See what they all decided upon and you’ll have an idea of what’s “fair” for your area. Keep in mind that prices of natural gas have dropped about 50% from their high two years ago, so don’t expect the huge bonuses that companies were offering back then.
Sincerely,
Philip Wynne