Seems pretty low ball....what was the royalty %...sometimes that makes up for lower up-front cash. I would look around...see what there is out there. Here in Texas...outside of the Metroplex area thats about par. The Metroplex area is seeing in excess of $2,500 per net mineral acre. Some other factors to consider are how many acres do you own, are they going to drill on you and if so how many wells do they anticipate. Have you had seismic done on the property yet? If not there are things to add to the lease as provisions like $25 dollars per acre for seismic minimum. I still say look around, see whats out there. Chesapeake is a reputable group, so if they are in the ballpark I say go for it.
Charles, If they offered you $500 they will pay more. I live in Preston Co. and when I was first approached by Chesapeake they offered $350, I said no, and the negotations started. Finally I signed for $800 and 14%. Could have gotten more, but I'm satisfied, and the addendums we put in the lease were worth a lot.
My advice: Hire an experienced attorney. It's worth every penny that an attorney will charge.
Which county and where in your county your property is located is important in assessing how good the offer may be. Also agree about the necessity for a good lawyer. You need one to review the lease anyway, so it's good business to spend a little more and have them do the negotiations. brinlady
I have found a good lawyer in Mannington WV, he passed the secret "honesty test" set by by California attorney, who has experience with mineral, and oil and gas rights. Email me, if you would like his info. He's doing a whole bunch of "unclaimed property" recoveries for my family.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]