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.
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!
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
++Love your Avatar 2d Amendment!++
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More