When you have a lease agreement do you get a payment annually?

What if no oil is drilled or is non producing? Do you get a payment every year or is the bonus a one time thing?

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 16, 2008 at 15:23
If they want to keep the lease then they will pay the rentals, if not the lease dies, unless there is wording to the contrary within the lease. You need to contact a lawyer to tell you what the lease language says about rental payments.
Permalink Reply by po boy on August 16, 2008 at 15:55
That is ny understanding.

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 16, 2008 at 16:04
I would ask for a rental form, be it $10,000 a year or whatever.

Oil & Gas ProPermalink Reply by ETOilman on August 16, 2008 at 16:05
Too much accounting and dates to keep up with EVERY year.
Permalink Reply by po boy on August 16, 2008 at 16:12
LOL, I rent houses on 1/4 acre lots for less than then, for $10K an acre I pull the houses off and build the bunkhouses and a drilling pad.,For $10K AND 25% ROYALTIES - any takers?.....I like the way you think!

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 16, 2008 at 16:17
Me to Po Boy, bring in the bulldozer.

landownerPermalink Reply by P.G. on August 16, 2008 at 16:18
How common is it for the O&G to buy a house to bulldoze so they can keep the distances from the well site legal?

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 16, 2008 at 16:25
I heard that they it did around Ft Worth with a mall but I am not a Barnett Shale man.

landownerPermalink Reply by P.G. on August 16, 2008 at 16:31
Yes, seeing how all the other land owners in the unit are benefiting as well off of your land the pad is sitting on. Why should your land be sacrificed but not theirs?

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 16, 2008 at 16:34
Interesting. That is a lot of money. Do you think that they will make a deal with you at that figure?

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 16, 2008 at 17:15
Right on Second Amendment.
Permalink Reply by po boy on August 16, 2008 at 16:41
True, I spent some of my youth in the rural mid-west, and many of the farmers in the county made more of of the underground missile silo leases than they did growing wheat. I looked piece of business property in Bossier that was priced out of the market because the cell phone tower on it was generating almost a mil a year.
Yeah, I think I would Bulldoze 8 acres of rentals for a firm $10000 rental
per acre and 25% royalties. with a good long term contract. But they would have to run their own pipeline 1/4 to the nearest big pipeline.
Very unlikely-but I could live with that, and sleep guilt free. If the first royalty check from the Haynesville Play is true-I may give them the lease for a moonpie and a RC Cola+24% . LOL
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