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.

Views: 599

▶ Reply to This

Replies to This Discussion

Permalink 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.

Permalink 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.
Permalink 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??????????????????????????????????????

Permalink 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.

RSS

Support GoHaynesvilleShale.com

Top Content 

1 Looking Back At The Haynesville Shale - A Retrospective

Looking Back At The Haynesville Shale - A Retrospective
2 Pending Public Oil and Gas Hearings

Pending Public Oil and Gas Hearings
3 Arkansas Smackover Lithium Play

Arkansas Smackover Lithium Play
4 Aethon looks for Buyers of its Haynesville Assets

Aethon looks for Buyers of its Haynesville Assets
5 Notice Emails Are Back! Please review how they work.

Notice Emails Are Back! Please review how they work.
6 Comstock October Presentation

Comstock October Presentation
7 Haynesville Has 12.5 Years of Sub-$3 NatGas Inventory - Enverus

Haynesville Has 12.5 Years of Sub-$3 NatGas Inventory - Enverus

Blog Posts

The Lithium Connection to Shale Drilling

Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…

Continue

Posted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service