Comment

Comment by Kathleen on April 20, 2012 at 1:52am

Ive seen this broken down like this in an alov lease. When we think of a bonus we think of that one time upfront payment but the oil co. can look at it as a per year per acre lease which for you would 300 per year for five years being paid upfront. If the lease has the extension option of 3 years with the same paid up lease monies than in that section it could word the lease as 500 per acre for three additional years. Still gives you the 1500 per acre.
Please do not go by any verbal promise. If it does not say they will not drill on your property in the lease than they could.
Our lease states they have to tell us when we are in a unit before they start drilling. They could have the pad up and everything proposed but they only need to tell us I think when they submit the production unit acres to the odnr. We found out earlier since we got our water testing papers with a named well on them, and I called Chesapeake with my parcel number and well name.
I would think adding notifications into a lease wouldn't be too hard but who knows.

Comment by Finnbear on April 19, 2012 at 5:25pm

If it is a "Paid Up" lease then you get the whole $1500/acre, even if they drill the first year. There is no "Delay Rental" in the primary term of a "Paid Up" oil and gas lease.