The leasing company has agreed to pay us $20/seismic permit, $30/acre lease option with a 20% royalty and a $150/mineral acre bonus. I asked on Wednesday to go back to the operator for reconsideration of a royalty greater than 20% and if between 20-25% an additional amount they would pay us over the $150/mineral acre. The call back today asked us for the additional bonus above $150 if we agree to 20% (they did not come back with an increased number).
Can anyone tell me if this is a good deal or not? The lease is on 320 acres.
Clint, I can’t thank you enough. It’s very hard to manage minerals and farm leases when you’re not in the state. This is great information. Because of our location out of state, I feel we might be taken advantage of. Texas is a big state and there is lots of activity. You are making this easier for us. It’s very much appreciated and with people like you too, America will be great again.