A gentleman from Civitas just left a message about a lease with $5000 bonus, 1/4 for 3 years. Does anyone have any idea about current bonuses? I know that there’s a range, but haven’t seen anything lately.
Depends on the location of your minerals. Please provide the legal description for the minerals e.g. Section, Block, Township (if applicable), Survey, etc.
Thanks for your reply. It’s Section 83, Block 01, W&NW Ry. Co. Survey. Now that I’ve seen a copy of the lease, I’m more concerned that it’s for ALL DEPTHS. It seems like previous leases were for specific formations. Any opinion on this?
Depths/Formation is negotiable and you can protect yourself with a good Pugh /Retained Acreage clause combined with a continuous development clause. You also need to make sure you include a good “cost free” provision that is consistent with the latest cases as well as constructing it as a “gross proceeds” lease. You need to have any lease reviewed, edited, and/or amended by an Oil & Gas Attorney. I cannot stress that enough.
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Thank you so much for your insight.