Twin Cities making contact with residents inside city limits.
I talked with their representative over the phone the other day, after receiving my letter. They are offering $2,000 per acre. IMHO is way to low an offer for the present market especially from a group with a shady past track record. Land man I spoke with did not seem to be very knowledgable on specific clauses. My counter offer was for no bonus money but 30% royality and specific clauses to protect the landowner or $3,500 for 3 year with $1,000 per year delay rental similar to recent leases with EOG just south of town.
Views: 26
Replies to This Discussion
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Permalink Reply by msfva on -
DYST_IP,
By simply not leasing, you get no bonus money, but a lot more money than 30% royalty. You get virtually all of the production (once the well pays off). Think hard before you take a zero bonus and 30% royalty. They also cannot touch your land if you don't lease. -
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Permalink Reply by Bill Fowler on -
A lot of issues need to be considered as to whether it is a fair offer or not. You said that it was for 2000/ac. What is the term of the lease? What royalty? Where is your land located? How soon do you think taht they will be drilling? In my opinion, the real money is in the royalty.
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