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winnie, the bonus paid whatever the amount never appears on a lease form. It will be stated on the cover letter you get with the lease. Do not execute the lease until you have the check. The extension bonus, in your case $250, should appear on the lease however it is usually not in the body of the lease it is contained in the Exhibit A page or pages in a separate paragraph that defines how the lease may be extended beyond the 3 year primary term. I'm not an accountant so I don't comment on how payment affects anything else. The bonus will be taxed as "regular" income.
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