I think i understand the 75% rule but i dont know what lease terms the owners who are forced get. Does this apply to all unleased owners or only owners who cannot be located?

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As I understand the new regulations, the BEST lease terms signed associated with said parcel, is to be applied to leases that cannot be signed, either by inability to find the owner(s) or unable to come to an agreement.

For the sake of argument, if I own 40% interest, my sister Nancy owns 40% and you own 20%...  If I leased at 12.5 percent royalty and Nancy negotiated a better deal, giving her 18% royalty, the production company would be required to pay you the same 18% as Nancy, I would be left in the cold for not being able to negotiate a better deal.

Good Luck!!!

Thanks! Do you know if this applies to bonuses too?

As I understand it, the non-participating (forced) lessor will receive an AVERAGE of bonuses negotiated by the participating lessors.
Thanks, I appreciate the 8 formation.


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