Difference between one-time "signing bonus" and annual lease payments?

OK, I'm pretty sure I know the answer to this, but I've gotten myself confused. If you sign a 3 year lease and get a "sigining bonus" does that mean you get an annual lease payment plus the sigining bonus in the first year? Or do you just get the one time payment and then no more income until the royalties statrt coming in?

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Permalink Reply by Two Dogs, Pirate on August 4, 2008 at 14:46
You are in a good place, be patient, let them contact you, don't take the first offer and make sure its a shale player and not a buzzard.
Permalink Reply by po boy on August 5, 2008 at 9:05
Am I understanding there is a NORTH La. contract and a SOUTH La. Contract? It Seems that the "rental" contract that spreads the moneys over time is prefferable from a tax stand point. Is it?
Permalink Reply by Two Dogs, Pirate on August 5, 2008 at 10:24
It has been that way for years. There are all kinds of clauses in the South Louisiana lease form also. You ain't gonna get all down there either, surface to China. South of I-10 it gets very complicated, a wet behind the ears type would get chewed up and spit out in 5 minutes.
Permalink Reply by po boy on August 5, 2008 at 10:42
What is best or preferable terms we can hope to get up this way? or are we all just "light snacks"?
Permalink Reply by Two Dogs, Pirate on August 5, 2008 at 11:08
$50,000 per acre per year & 30% and don't worry to much about additional clauses other than up and down depth cutoffs and Pugh Clause.
Permalink Reply by Two Dogs, Pirate on August 5, 2008 at 14:43
I dont see a reply icon on your post but that sometimes happens on this site. Your property belongs to you. You can lease for whatever, if you got the guts to hold out then who knows what it will go to. I thought that it had topped out at $10,000 an acre for the Dallas/FtWorth airport 2 years ago. It is way above that now, so who got screwed? OGML being turned down at $25,000 a year in Texas and the production is three times Texas here in Louisiana.
Permalink Reply by po boy on August 5, 2008 at 15:59
Surely there is a point where they walk away from the table and focus on the 80% of your neighbors they can sell. Then what?maybe royalties if the well becomes profitable on paper.?
Permalink Reply by Big Daddy, bcnr on August 5, 2008 at 16:23
O.K. Mr Scarbrock, how does the Haynesville Shale play out for us in Desoto Parish that are alreday leased and producing from the Cotton Valley formation?

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