Whats the going rate for HBP - Shut in - Delay payment??? I have heard amounts $5 to $25 per acre. I am looking to sign in the near future.
I have heard of the same terrible low amouts. These amounts were common in the early 1900's where many oil and gas lease documentation stemmed from. As an arguement you may say to the gas company, I want the present value of what $25 was worth in the early 1900's or appoximately $275 an acre.
Question - Is the HBP payment an advance on your future royalty ?