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Oil/Gas/Lease offer received

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Question
Hi, A company sent an offer to purchase my husband's mineral intrest. The terms stated
$500 per acre under 3/16th royalty lease
$350 per acre under 1/8th royalty lease
Are they trying to buy my husband's share or continue to lease? Is this fair or should we negotiate? It's 80 acres of land.

Answer
It's a lease offer, not an offer to purchase. Without knowing where they are it's impossible for me to tell you whether the offer is fair or not. You might read the Leasing Tips article I've posted on the Mineral Hub, as it explains the leasing process in detail. You can find it on the Mineral Hub website at http://www.mineralhub.com/2010/09/oil-and-gas-leasing-tips-part-one/

Hope this helps you out!
Frederick M. Scott CMM, RPL
The Mineral Hub
www.mineralhub.com

Oil/Gas

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Frederick M. Scott

Expertise

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.

Experience

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.

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

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

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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