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Oil/Gas/Baca County, CO Lease Offer


I was contacted bay a Oil and gas landman to lease my 540 acres for $10.00 per acre for 5 yrs. and 1/8 royalty proportionately reduced by my interest in the minerals. The mineral rights are in Baca county  CO.
I have not replied to his offer yet. So I know you are in Oklahoma ,but maybe you could give me some idea of the worth or who I might contact in Colorado.


DeWayne Maddox

You didn't provide me a legal description, which would have been helpful (which is why I ask for one on the "Instructions from Expert" page visible prior to asking your question) but there are actually only a couple of companies leasing in the whole county currently that I know of so likely it's one of them that contacted you. You can contact the other and see if they are interested at a better price, though there's really not a lot going on here so I wouldn't get your hopes up too much. With 540 acres though I think it would be wise to consult an OIL AND GAS attorney prior to signing your lease. If a producing well is drilled, a lease can affect your rights for decades, so you want to make sure it's a good lease before signing.

The companies I found who've bought leases in the county over the past 12 months are:



Bayhorse is by far the most active.

Note that if you wanted to SELL these instead of leasing you would get more for them obviously, but then would not be able to share in any future royalty or bonus payments (if any.) I figure they are probably worth about $100/acre to most buyers assuming you have a current lease offer in-hand. Some would offer less frankly, and I doubt any would offer more so perhaps best to just hang on to these and lease them for $10/acre unless you really need more money. Things might pick up in the future if some real good wells are drilled in the county near your minerals (none yet though.)

If you do decide to lease instead of sell, you might also hit them with a counter offer of $25/acre and/or 3/16 royalty and see what happens. Couldn't hurt. I'd also suggest you read my OIl and Gas Leasing Tips article on the Mineral Hub Dispatch before you contact them again as it will give you a "feel" of what questions to ask.

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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