Inherited mineral rights on 46 acres (1/5 interest in 230 acres)in the "Wheelock" prospect in North Dakota. The rights are currently under lease which was a 4 yr lease and a option year which was exercised ending July 2010. The Oil Company has just made an offer to lease for 3 yrs starting July 2010 with an option for 2 additional yrs. Both have a 1/6 royalty provision. The offer would pay 25% now and 75% in July 2010. The offer is basically double in $ amount, yet original lease was 4 vs 3 years and option years 1 versus 2.
My question are:
1. Is it common practice to receive an offer a year prior to expiration of the exercised option year?
2. Where can competitive quotes, if any, be acquired?
3. What is "forced" participation (or similar term) mean and does it only apply only to the 230 acres of the family owned mineral rights?
