Hi - Received an offer from Rice Energy which shows 1/2 bonus paid in 75 days and balance paid one-year from signing. Does anyone know if Rice Energy is normally agreeable to other bonus payment schedules that would better benefit the landowner (like maybe 1/2 in 75 days + 1/2 in 3 months)? Am worried they would not pay the second installment when it comes due. Any advice on this is welcomed!

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Comment by Joyce R Hoover on October 16, 2015 at 6:54pm
Aside from your tax considerations, you need to consider the likelihood that Rice Energy will "Unitize" at least a part of your acreage, or meet at least one provision of your Lease, thus negating their obligation to pay you any subsequent bonus payment beyond the first payment. Of course, this depends upon the terms of your Lease Agreement with them. You may want to check with your accountant and attorney, but typically money received earlier is better than later.
Comment by DESJR on September 23, 2014 at 5:23pm

there is no advantage to take multiple payments in the same tax year. Now if they are paying over different tax years, that can be very beneficial to you, depending on the tax bracket it puts you in. In hind sight, I would have liked my 114 acres split over 5 years instead of all at once. Put me in the top tier tax bracket with no way to reduce the tax exposure. I am signed with Rice as well.

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