Union Parish Lease Negotiation

Can anyone tell me if this is a good lease offer at the going rate now? We are being offered as terms: $400/acre for a 3 yr primary term with option to extend and additional 4 yr for $400/acre and a 1/5th royalty ?????

I have been told a 2 year term is standard, not 3-4. Also, that the lease bonus and royalty amounts seem average for today.

Thanks.

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landownerPermalink Reply by tom post on June 5, 2013 at 11:20

This seems like a very good offer to me.  We leased a year ago for $300/acre for 4 years with an option for another 4 years at $300.  I believe the royalty was also 1/5th.

Maybe some others that have leased this year can give you some advice too.


landownerPermalink Reply by North LA on June 5, 2013 at 14:47

JM,

Where is your land located? What company was offering?

Permalink Reply by JM on June 5, 2013 at 16:17
No reply.
Permalink Reply by JM on June 5, 2013 at 16:34
No reply.

landownerPermalink Reply by North LA on June 6, 2013 at 15:48
Could you try the response again? It didn't work for me.
Permalink Reply by whodat on June 6, 2013 at 16:41

No reply??????????????????????????????????????


Oil & Gas ProPermalink Reply by Two Dogs, Pirate on June 7, 2013 at 2:42

I don't recall  a play where the primary term was for  2 years. They are always 3 or 5 years many have been 3 years with an option to extend for 2 additional years. I have taken 2 year leases but most of the time that is due to the fact that the minerals will prescribe to the surface owner in 2 years or whatever time is left for prescription to run.

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