Mineral Rights

[George Ramsay]

Apologies if this should have been posted elsewhere but seemed to fit here....Out of the blue my wife has been approached by an energy firm looking to lease 2 lots that she owns For the express purpose of paying royalties on the mineral rights. The offer is $600 lease for 3 years with the option to renew the lease for another 3 years an $600. Although that seems a little lowball to me there is an 18.75% royalties on top of that. I frankly don't know the first thing about mineral rights and was hoping someone could help point me in the right direction and offer some constructive feedback. Thanks!

[Rita Bautista]

As a general negotiations rule any first offer is likely a fraction of what they would actually pay.