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Oil/Gas/fair price for lease

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Question
Capstone Land Co. has recently contacted me about leasing our mineral rights in McClain county in OKlahoma.  S/2 SE/4 NW/4; E/2 SW/4 Section 23-06N-02W  They have offered me a 3 year paid up oil and gas lease with the terms being $150 per acre bonus and a 3/16 royalty.  This was passed down to me thru an estate.  I have no idea of what would be fair or who to ask about this.  Can you help?  Thanks

Answer
From my understanding the average price per acre in the area is about $225 but your royalty amount is on the top end of what I've seen as is your term.  Most leases are for a term of 5 years and the average royalty of about 16.667%.

I believe your offer to be mostly fair for the area.  

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Cliff Williams

Expertise

I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.

Experience

I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

Organizations
State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

Publications
Multiple oil and gas topical columns on ezine.com.

Education/Credentials
I have a B.S. degree which I rely upon more than my Business Mgmt degree or Law degree...

Awards and Honors
Husband and father of 26 years

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