They are offering what is called a Paid Up Lease.  The $250 per acre is a one time payment that covers the entire primary term of the lease whatever number of years that may be.

You're welcome.  If you read the early discussions about Andadarko  leasing in the North Caddo Group you may see a repeat in Cass County.  Anadarko leased through 3 land companies.  Each started in a different area and their areas were not connected.  Following their activity over time those areas converged into a single leaseblock (100,000 + acres).  Mineral owners who wish to be proactive can learn to do some simple searches in the public records on file with the county.  You might find evidence of each land company using the same lease form, offering the same lease terms, etc.  Those land companies will not record an assignment to their client for many months.  Usually at the point that development is well under way.  Early lease offers almost always improve over time but it's unlikely that any increase will be substantial unless some serious competition for leases develops.  Those who do their homework may be rewarded.

Good news for Pegasi!  

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