Royality payments going up and down!!!!

My aunt has about 10 acres not far from Longwood general store and has signed a lease a few years ago and she said that her royality payments go up and down depending on activity has anyone experienced this that has already have leases. I just didn't know how that works i would think that the percentage of royality that they offer would apply to the full lease aggreement.

Replies to This Discussion

Permalink Reply by carol on July 15, 2008 at 1:39

Thanks, that makes sense now.

Permalink Reply by J Todd on July 16, 2008 at 11:35

The royalty percentage stays the same I believe. But since it is a PERCENTAGE, it will vary. For example 25% of $100 is very different from 25% of $100,000, but the percentage rate is the same. Royalty income will always be dependent on the current value of the product which is being leased. Hope this is the case.

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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

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