Clause to include in lease?

Texas Mineral Rights Reeves County, TX
1

Has anyone been successful in getting a Favored Nations clause included in their lease? It's where the lessee agrees to give the lessor (you) the best terms it makes available to any other lessor.

It would lessen the fear that you are agreeing to a bonus amount per acre that is less than what others are getting.

I would imagine even if you do get such a clause included it would normally only apply to the entity (landman, broker, operator) you're signing with, not to any later entity the lease is assigned over to. I would also think it would need to be limited to a specific (nearby) geographic area and reasonable time period during which it would apply.

Thoughts?

2

I haven’t seen any company willing to do this that I have run across. From past experience, I have only seen it when their backs are really up against a wall. Of course your ideas about limitations make it more palatable but from a big company perspective, it is an administrative nightmare to have those clauses.