received another offer 400 per acre 20% 5 year lease with no option to extend, Will give free royalty clause and pugh clause incorporated into lease. They say they won’t give a 3yr with 2 year with those terms. When they say no option to extend but in the lease says that it can be anyway unless operations have ceased for specified amount of time. Confused beyond belief.
What is your question?
I was offered 400 per acre with 20% royalties with 5 year term no option to extend. Willing to add pugh clause and free royalty clause. Been informed by several people that would be acceptable lease terms for my acreage to lease. All new to me just trying to protect myself but not lose out either. The lease would be in Scurry County Texas. I just need some advice they are not willing to do any other terms. This is their 3rd offer to me.
they insist 5 years with no option to extend. I know that if well that might be drilled is producing the lease continues in effect unless operations cease for a specified amount of time. Why other than a flip would they insist on 5 years?