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Key Takeaways & Quick-Start Checklist
- An oil and gas lease allows a company to explore for and produce oil and gas from your minerals while you keep ownership.
- Royalty rates in many active areas range from roughly 12.5% to 25% of production revenue, depending on location and competition.
- Bonus payments provide upfront cash per acre for signing, but the real long-term value usually comes from royalties.
- Every clause in the lease is negotiable, not just the royalty percentage.
- Legal and tax review is essential before signing, especially for multi-year or multi-well projects.
Quick-Start Checklist
- Confirm that you actually own the mineral rights (not just the surface).
- Request the full draft lease in writing — never rely on verbal assurances.
- Research typical bonus and royalty terms in your county and state.
- Obtain at least two or three offers when possible.
- Work with an attorney who specializes in oil and gas contracts.
- Understand how royalties are calculated and what costs can be deducted.
Key Takeaways & Quick-Start Checklist
- An oil and gas lease allows a company to explore for and produce oil and gas from your minerals while you keep ownership.
- Royalty rates in many active areas range from roughly 12.5% to 25% of production revenue, depending on location and competition.
- Bonus payments provide upfront cash per acre for signing, but the real long-term value usually comes from royalties.
- Every clause in the lease is negotiable, not just the royalty percentage.
- Legal and tax review is essential before signing, especially for multi-year or multi-well projects.
Quick-Start Checklist
- Confirm that you actually own the mineral rights (not just the surface).
- Request the full draft lease in writing — never rely on verbal assurances.
- Research typical bonus and royalty terms in your county and state.
- Obtain at least two or three offers when possible.
- Work with an attorney who specializes in oil and gas contracts.
- Understand how royalties are calculated and what costs can be deducted.
Key Takeaways & Quick-Start Checklist
- An oil and gas lease allows a company to explore for and produce oil and gas from your minerals while you keep ownership.
- Royalty rates in many active areas range from roughly 12.5% to 25% of production revenue, depending on location and competition.
- Bonus payments provide upfront cash per acre for signing, but the real long-term value usually comes from royalties.
- Every clause in the lease is negotiable, not just the royalty percentage.
- Legal and tax review is essential before signing, especially for multi-year or multi-well projects.
Quick-Start Checklist
- Confirm that you actually own the mineral rights (not just the surface).
- Request the full draft lease in writing — never rely on verbal assurances.
- Research typical bonus and royalty terms in your county and state.
- Obtain at least two or three offers when possible.
- Work with an attorney who specializes in oil and gas contracts.
- Understand how royalties are calculated and what costs can be deducted.
