Tags:
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.
386 members
399 members
119 members
8 members
97 members
59 members
242 members
172 members
455 members
87 members
© 2024 Created by Keith Mauck (Site Publisher). Powered by
h2 | h2 | h2 |
---|---|---|
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 |
Links |
Copyright © 2017 GoHaynesvilleShale.com