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Permalink Reply by Keith on March 30, 2012 at 4:00

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?

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Permalink Reply by The_Baron on March 30, 2012 at 4:40

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.

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Permalink Reply by Keith on March 30, 2012 at 6:41

Thanks Baron, but that sucks. I liked it better when I thought it was $900 for my imaginary acre.

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Permalink Reply by The Shadow on March 30, 2012 at 9:19

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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Permalink Reply by Dash Riprock lll on March 30, 2012 at 10:07

Agree, royalty more important, along with a good "Exhibit A". I am a little hung up in negotiations now over 3/16 vs 1/5 on conventional Tuscaloosa and deeper.
Just read about a fellow in Eagle Ford who got 1525/@ for 18 month lease on 3250 acres. Location, location, location

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