Hello Border,
State mineral leases command a much, Much higher rate of bonus that do
privately held mineral leases - they are put up on auction and several
bidders. Some mineral acres go for 1000's per acres depending on
location and the number of oil companies or independants bidding... so
don't compare your offer to the school lands - it's apples and
oranges.
Is this the 'first offer cycle' with this company-- if it is, and it
were me, I would counter. But, that's me.... Sounds to me like
there is high interest from you and the other posters --- I would
probably put my emphasis on negotiating the royalty upwards...
On Sep 24, 1:06 am, Border Minerals <[EMAIL PROTECTED]> wrote:
> We have multiple mineral acres in Divide County up along the Border
> that have been in the family for over a century and have just received
> a lease option at $125 per acre @ 17%. for 5 years or $100 dollars for
> three years and another $75 if extended for another two years We have
> also just learned that someone has just recently secured the royalty
> rights of a extremely large land hold just across the border from
> us.
> The school section to the east of us just sold in the August auction
> at $270 an acre.
> Is there anyway that we can determine who has secured these large
> Canadian lease rights ?
> Is it true that the school sections typically bring more initial money
> due to the state tax credits offered?
> The last three year lease that we had was for 3/16ths or 18% expired
> about six months ago and in that lease we had got them to add a 2 year
> gas shut in clause, a spacing unit pugh clause, and a vertical pugh
> clause . Is there any other considerations that we should be
> requesting?
> Thank you so much for any advise and or information that you can
> provide to us.
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