What is the average lease price in Monroe co? I have a figure from Eclipse which I think is a little low.
I can't speak to the average, but I'm leased with Eclipse in Monroe and received $6,500 per acre and 20%, that was back in late 2014. We had held out longer than others, in part because we don't live at the property and were later than most in knowing about the extent of the industry development in the region. Of course the lease market is different now, maybe rebounding some, but likely still lower than at that point in time. And as others may tell you, it will depend on just where you are in the county and whether your parcel is fairly critical to a unit they want to form. Have you received offers (from anyone) in the past, or is your property just now getting attention? It seems like by now, most "available" rights have been scooped up by one place or another, to use for a hopeful unit or hold as a trading piece with another O&G developer.
The 5K seems like a good offer, though I'd push for 20% and no deductions. And as for the deductions, you might want to consult an attorney to look it over for you. I've seen multiple ways of phrasing the "no deductions" clause online. Some (hopefully my own lease) seem better, and others leave a lot of wiggle room for interpretation. I've had good relations thus far with Eclipse and have no reason to believe, yet, that they won't abide by the contract terms and NOT take deductions. I'm still waiting on official unitization myself (again, hopefully on the near horizon from what I've been told) so I have no royalty history yet other than the lease bonus itself.
I would think that if they do need your parcel to complete a unit (seems odd they would disclose their hand like that), they will be willing to negotiate; and start their offer with some room to go up. Wouldn't push my luck too much asking for the sky, but still make sure you're happy with the terms.
If I were looking to lease, I would look for 7K, no ded., better than 18%, in lieu free gas clause, up to 100/acre shut in, pugh, no surface activity, maybe a few other goodies. Green twp.
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