mskillerbee. The good news is your 5.25 acres is in an excellent location. The less good news is it is in an area that has drawn little interest to date as much of the township is urban. Both expensive and difficult to develop. What you need most now is patience. My advise is: 1) NEVER accept any offer that comes in the mail and contains a check 2) Decide on the lease language you feel is important (Kassi's list is a very good one but the trick is to only require the basic ones that suit you and your land - a 25% royalty is standard, do not accept less) 3) If your circumstance allows, do not approach any lessee, let them come to you 4) Logic dictates that the first offer you get will be the lowest (it is better to wait until your section in unitized and even better to wait until a well is permitted) 5) Considering the size of your mineral estate, do your own homework and your own initial negotiations ( consult an experienced O&G attorney before you sign the lease - 1 hour = $300 -$400). As getting the best lease possible is so important to you, resolve to not get in any rush. Decide on the lease language you require first. Let any interested lessee know what you require up front. Lease bonus comes next. Remember there is no need to worry about how much until the time comes. That's when GHS comes in. 5.25 acres will not support you alone. It is advisable to have a financial plan and to save the money from the first well until the taxes are paid and you get a feel for how your royalty income will decline with the production of your well(s). Your 13th. month check will be approximately 18% of your 1st. As the play has slowed, it may be some time before development of your section occurs. You must be patient to maximize the value of your minerals.
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As 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