I have received a Proposal for a Top Lease Agreement in Martin County Sec22, Blk37, TS1S. Can anyone answer some questions?
Hi Suzanne -
I’m in Martin County. What kinds of questions do you have?
So sorry yo drop the ball. Thank you for your reply.
What is a fair price? And what should I look for in the lease? I know it’s a general question and may require me to go to law school. 
The simple answer is as big a bonus as you can get, the largest royalty you can get - in Martin right now that is usually 25%. And the shortest lease term. Leases are complicated and it is better to consult with a professional offline about your individual situation. NARO also offers a wonderful publication- Look Before You Lease. It is a plain spoken publication that I think you would find very useful.
Thanks! Lana
Thank you for the info. I have visited the NARO site but can’t find a link to that publication. Can you please send it?
Unfortunately it is for purchase. Are you a current member of NARO? If not, there is a membership drive right now and new members can join for as little as $50. Membership includes a lot of informative webinars and other content you might find of interest, including a discount on books including this the leasing book.
Thank you! I will check into membership. I have a specific question:
The cover letter on the lease agreement says: “upon a determination that the old lease is no longer valid then we have the right, but not the obligation, to pay the 90% balance within 90 days of release of the old lease.” Does this mean they don’t have to pay it within the 90 days or does it mean they don’t have to pay it at all?
I will let the attorney answer that question about the 90%.
My two cents as a mineral owner is not to do a top lease. I am attaching a very good article regarding the pitfalls.
An Overview of Recurring and Related Issues Involving Top Leasing.pdf (210.2 KB)
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