normal terms for oil and gas lease

[warrington]

what are the normal terms
a bonus consideration of $____ per net mineral acre, a royalty of ____, on a three year paid-up lease
____year lease

[PYBUCK]

They are offering up $3,500 per acre and 25% interest here.

[El General]

what are the normal terms
a bonus consideration of $____ per net mineral acre, a royalty of ____, on a three year paid-up lease
____year lease

There is alot of variation depending on where you are.

[warrington]

Brazoria county

[Ag 96]

what are the normal terms
a bonus consideration of $____ per net mineral acre, a royalty of ____, on a three year paid-up lease
____year lease

There’s now way to tell because it totallg depends on area, where you are in the field, who’s doing the leasing, your leverage (mineral acres/surface/trying to complete a unit) etc. Go talk to your local O&G lawyer. I’m an attorney, and even I hire a friend who’s a board certified O&G attorney to handle it. He has tons more insight to current market conditions and knows which buttons to push to get the best deal for you.

[quarterback]

Definitely hire an attorney. I'm a geologist and I always dread when mineral owners get an attorney involved but it's really in your best interest.

[DUKFVR]

Get with Wes on here. He goes by The Crippler. He has helped me when buying land & O/G stuff was present.

[swamprabbit59]

Lawyer up for sure. The O&G people will completely screw you if you’re not knowledgeable. I’ve seen land owners who didn’t have a clue get awful deals, but I’ve also seen land owners who didn’t own royalties get paid really well. Even get small percentages of royalties when they make the correct deal with the O&G companies.


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[Sidro]

Never, never, never and again never take a working interest. Always go with royalty and ***x amount of dollars per acre. Always get a drilling commitment as to time for wells to be drilled (60, 90, 120 days between wells until property is drilled up per acres for each well spacing) along with time for completions per well.