I thought I knew the answer to this, but now I'm second guessing myself.
When you get an offer of $300 per acre for three years, is that $300 per acre per year?
If so, is it common to get the three years up front?
In my mind if I had 1 acre under lease for $300, I would get a total of $900 from the lease bonus.
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Thanks, my other question is the lease normally $300 per acre, per year or is it $300 per acre for 3 years.
$900 dollars versus $300?
Most leases now are paid up leases, so if you are offered $300/acre for a three year lease you would get $300 for your imaginary one acre.
Thanks Baron, but that sucks. I liked it better when I thought it was $900 for my imaginary acre.
The bonus depends on a number of factors, such as, location (Township and Range), what company is leasing, whether the drilling is a vertical or horizontal and to what zone,whether for oil or gas, number of acres you have to lease and etc. Check in your area to see what lease bonus other people are getting for their property, keeping in mind the preceeding factors in relationship to your situation. An oil and gas attorney may be able to help or other people on this site may be familiar with your area enough to give you a good idea of the amount to negotiate for. An attorney is always wise to consult to get the best lease terms possible in addition to your bonus. As stated on this site before, when you sign a lease it could possibly be a lifetime contract. I know this for a fact from experience.
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GoHaynesvilleShale.com (GHS) was launched in 2008 during a pivotal moment in the energy industry, when the Haynesville Shale formation—a massive natural gas reserve lying beneath parts of northwest Louisiana, east Texas, and southwest Arkansas—was beginning to attract national attention. The website was the brainchild of Keith Mauck, a landowner and entrepreneur who recognized a pressing need: landowners in the region had little access to…
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