Would you rather have a lease for five years with money up front and a higher royalty?
Or a lease for ten years with money annually over ten years (amounting to $5000 more in the end) and a lower royalty?
I would rather have a paid up lease up front and a higher royalty. If the well is drilled and successful, the higher royalty usually far outweighs any bonus. And highly recommend that you get a good oil and gas attorney to review any lease. I would not lease for ten years as that time frame is too long and the bonus money may not be competitive in that timeframe.
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I agree with M_Barnes. Get a shorter lease, push for more up front bonus money, and more royalty. Their first offer is always low, and they’ll almost always work up.
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