Our neighbor was contacted by DPS Land Services and offered "$1500 per net mineral acre" plus 15% royalty. The letter says they are "working on behalf of EAP Ohio, LLC." He asked us what we thought and we have no clue but I told him I would post here.
Can anyone tell me if he should accept, considering none of us around here have heard anything from anyone for years, or is this too low? And why would they contact him out of the blue? We are in Monroe Township. Thank you!
EAP has been paying 1,000 per acre per year on the lease so if they are looking for a 2 year lease you should get $2,000 per acre and also push for 16 or 17% as they have been agreeing to that as well. Make sure you have the no cost royalty language. Right now they have been only leasing what they plan to develop in the near term which is why they typically do a 2 year lease
Thank you very much. I believe they want 5 years. I appreciate your answer.
A few years ago, I used KWGD attorney Wayne Boyer to handle my lease. He did a very good job of covering the critical issues, some of which Frank mentioned. I wouldn't recommend going at this without a qualified O&G attorney by your side.
Thank you very much Randy. I appreciate your time.