Average price per acre for leasing in WV for natural gas exploration?
Price per acre for leasing out mineral rights for natural gas exploration in West Virginia
I own my land’s mineral rights and just received an offer to lease it out for 5 years. They are offering 15.00 per acre and a 1/8 of profit for royalty.
I would like to find out if this is a fair offer. They said that they needed my land which is over 200 acres.
March 12th, 2010 at 10:27 am
The ‘average price’ depends on where your mineral rights are located in WV (Which County?). In my opinion, your offer is very poor. I would propose a counter-offer of at least $600 per acre and a 20% royalty. More importantly, you should add a few clauses to protect your interest; such as, Vertical Pugh Clause and Horizontal Pugh Clause, No surface operations provision and a no-warranty clause (express or implied warranty).
Submit a counter-offer and see how they respond. You do not need to accept an offer as proposed.