What is the encouraged minimum royalty percentage for oil and gas leases in West Virginia?

The encouraged minimum royalty percentage for oil and gas leases in West Virginia is 12.5%. This percentage is generally recognized in the oil and gas industry as a standard and is promoted to ensure that landowners receive a fair return for the use of their resources. The 12.5% benchmark has historical significance and is considered a fair percentage that balances the interests of both the lessees and the lessors.

While higher percentages such as 15% or 20% may be more favorable for landowners, 12.5% is widely accepted as the minimum that should be offered in leases. This figure helps provide a baseline for negotiations and contracts in the industry, ensuring that landowners benefit appropriately from leasing their land for oil and gas extraction while also remaining appealing to companies looking to develop these resources.