You are here:

Oil/Gas/Hughes County OGL Bonus


I own a few net acres in Section 29, Township 5N, range 9 E in Hughes county. The landman is offering a $50 bonus for a 3/16 royalty. Is this a fair price? Also is it normal for the lease to specify that I be charged for gathering and transportation charges?

thanks for your advice.

$50? Sounds pretty low to me unless the unit size is only 40-80 acres or something, rather than a quarter section or larger. It's normal for them to charge for gathering and transportation, but that doesn't mean it's something you have to agree to. I usually have them insert (or I insert my own) "no deductions clause" into the lease or simply strike out the offending language before signing the lease. Read my leasing tips article on the Mineral Hub News (website below) before signing. Lots of negotiating tips for you there as well as other helpful information.

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


All Answers

Answers by Expert:

Ask Experts


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)

©2016 All rights reserved.