TMS lease's

 

Here is a thought provoking question. Would you sign a lease for 21% no cost, including no deducting the cost of treating, gathering, storing, transporting, separating, dehydrating, compressing, extracting, processing, manufacturing, marketing, improving, or any other cost, including risk charges, whether similar or dissimilar to those enumerated.
Or would you prefer a lease for 25% and the statement- Lessor shall bear none of the costs of production and shall not withheld from royalty payments
 
Won't really affect my lease as I have just signed it and insisted on the 21% even though the co offered and tried to give me the 25%. Just wondering what others would do, and this is a TMS lease if that would change your opinion.

 

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Permalink Reply by Steve on May 23, 2011 at 10:56
Can you say what area of the TMS and what company you just leased to? The best I have heard so far in the TMS is 1/5 royalty. thanks
Permalink Reply by robert minton on May 23, 2011 at 15:46
25% less transportation,etc., costs will probable yield less than the 21% offer. check the deducts on someone's check stub. runs around 10% to 25%. do the math with actual figures!

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