Washington County Lease Offer

Hello,

I have about 8 acres in Washington County and my plot is about 3 miles from Noble County. I've heard Noble county is paying $3k to $5k per acre w/ the average around $3,400 per acre and 18% royalty.

I was offered $2,250 to lease my acres and 15% royalty. My neighbors appear to be accepting this offering so I'm assuming if I don't go w/ this company then I won't be able to go w/ anybody due to my small # of acres. Do you agree?

Also, the Landman said if I don't go w/ them I'll miss out on the money and the O&G company will just go around me. Can the O&G company just "go around me?" I thought they needed continuous acres all leased to drill.

Finally, since I'm so close to Noble county do you think $2,250 acre/15% royalty is fair? I'd really like to get the royalty up to 18% if possible.

Comments please.

I moved this comment to the proper spot. It's possible you've read this before.

Views: 671

Replies to This Discussion

Permalink Reply by greg on July 3, 2012 at 8:55am

Aurelius.

They just bumped offer up to $2,500/ 16% but it appears $3K and 18% is a reasonable offer/demand.

 

Question: if it appears neighbors are signing w/ same company soliciting lease offer does that pretty much force landowner w/ small # of acres about 8 to sign w/ same company? Finally, what does 18% royalty mean in dollar terms per acre per year? Is that average like $1,000 per acre per year w/ an 18% roytaly?

Permalink Reply by Kathleen on July 3, 2012 at 11:56am
On the bottom of this and I think every page on this board is a link to a free royalty calculator. Play around with it and see what 1% 2%.. would mean to you. Don't worry about the decline rates since you are just trying to get a feel for that % so just hit next. Good luck.

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