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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 21, 2011 at 11:48

The lease probably has a Mother Hubbard clause saying that they are leasing everything you own in the section wether described properly or not.

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landownerPermalink Reply by waltcop on August 21, 2011 at 16:21

If there is a Mother Hubbard clause in the lease and additional minerals are found by leasor, leasee or noted in the Division Order which were not included in the lease for calculating the bonus payment, is the leasee required to pay the leasor additional bonus money and at the same rate as the original bonus rate?  If not, can the leasor/mineral owner lease the minerals for which they did not receive a bonus payment?  Does the leasor/mineral owner have an option?

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 21, 2011 at 16:42

I would say to pay the bonus if underpaid. I would not want to work for a company that would short change a lessor of their bonus money.

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Permalink Reply by billy on August 21, 2011 at 14:05

At the height of leasing back in 09 the same thing happened to me.  I did not sign partly because of the way they conducted business in the first place.  I did end up getting considerably more but, our royalty was already 25% that stayed the same.  Good luck.

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