If have you received an offer to lease mineral rights, you will be entitled to receive a lease bonus as well. A Marcellus Lease bonus could range from just a few dollars up to thousands of dollars depending on where your property is located. As a mineral owner, your goal is to maximize the value of the lease bonus your receive. The lease bonus is part of the lease agreement terms that you will sign when you lease your property.
What is a Lease Bonus
A lease bonus is the amount that an oil and gas operator pays you for the right to lease your property for a specific period of time. This lease bonus is paid to compensate you for the right to drill on your property. During this time period, you can’t lease your property to anyone else and the operator has full control to produce the property. The lease bonus is paid on a per acre basis and is based on the amount of oil and gas they expect to find in an area. If you’re in an area where there is a large amount of oil and gas, your lease bonus will be much larger than in other areas that have less oil and gas.
How to Negotiate a Lease Bonus
As a mineral owner, you want to negotiate the highest lease bonus possible. The lease bonus may be the only money you receive for 3 to 5 years while you wait for the property to be drilled. The best way to negotiate the highest lease possible is to know the potential of your acreage and then aggressively negotiate to get the highest lease bonus possible. Fortunately mineral owners can also get assistance in negotiating the lease bonus by working with companies like US Mineral Exchange who help mineral owners negotiate the best prices. Working with a company like US Mineral Exchange is a great option for mineral owners because they can help you negotiate the highest lease bonus, best royalty percentage, and lease agreement terms that are favorable to you. Unless you have extensive experience in Oil & Gas and negotiation, we recommend working with experts like US Mineral Exchange who can help you negotiate the best possible price.
What Lease Bonus Should you Expect
It’s difficult to estimate the lease bonus amount you should expect. A Marcellus lease bonus could be just a few dollars in some counties, all the way to $4,000+ in other counties. If you live in an area with significant oil and gas activity like Tyler County West Virginia, you may receive thousands of dollars per acre. Other counties in West Virginia could be just a few hundred dollars per acre. If you have questions about your specific acreage, fill out the form below and we can help you better understand the value of your property.