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Oil/Gas/Mineral lease in Payne Co Sec 28-19N-R4E of IM



I have 35 mineral acres on a 80 acre tract in the referenced section.  I had a lease which expired on 11/03/13.  The existing leasing company contacted me to renew and made the following offers:
3/16 with $$7,000 bonus, 1/5 with $3,500 bonus, and 1/4 with no bonus.  It looks like that may be somewhat below going rate, from research I've done. In your opinion, would it be out of line to counter offer either 1/5 with $7,000 bonus or 1/4 with $2,500?

What leads you to believe it's below the going rate? That may or may not be the case in my opinion. I think the $7000 figure ($200/acre) is about the average rate being paid currently, especially since the units are smaller than 640 acres in most cases. Still, can't hurt to counter with 1/5 royalty and $7000. For a 1/4 royalty I'd still ask for $125/acre. All they can do is say no. Be nice when countering though, because in reality once you counter their original offer they are no longer obligated to lease you at all.

If it's the same company that leased you before, and they paid you more the first time, I'd ask them to see how close they can get to that figure just for kicks. You'll be saving them a little title work (and thus money) if they were your previous lessee.

You also might want to read my Oil and Gas Leasing Tips article prior to signing with anyone.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub  


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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