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It must be a mistake. Ryan, the lowest common royalty other than a specialty interest such as an Over Riding Royalty Interest (ORRI) was one-eighth or 12.5%. That is the historic beginning of wide spread oil development about 100 years ago and has improved over time. Modern royalty is in the range of three-sixteenths to one quarter but as more and more development is concentrated in unconventional reservoirs that range is one-fifth to one-quarter.
I could be but there is no way to know without more information.
Not bad but could use some negotiating. I prefer 3 year primary terms but would strongly consider 5 for a better royalty and bonus. Personally I would accept a 22.5% royalty and $500/acre for 91 acres. It would be good to know the energy company behind the offer and royalty and bonus are not the only important terms in a lease agreement. You've got enough at stake here to consider the assistance of an experienced O&G attorney.
The History of GoHaynesvilleShale.com
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…
ContinuePosted by Keith Mauck (Site Publisher) on May 21, 2025 at 6:00
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AboutAs exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More |
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