What time length can a lease be

I've heard of leases that are 3 years, 5 years, with or without a mandatory renewal, etc.

Are there LA law limits to the term of leases? Could the lease be 10 years, 20 years, 100 years?

I presume that if the property is sold, the lease would terminate 10 years after, unless HBP.

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Permalink Reply by The_Baron on August 13, 2009 at 3:22
You must have too much time on your hands.
Permalink Reply by Mac Davis on August 13, 2009 at 7:35
Doesn't someone who takes the time to post "You must have too much time on your hands." have too much time on their hands, too?

8-)
Permalink Reply by The_Baron on August 13, 2009 at 8:29
maybe.
Permalink Reply by Skip Peel - Mineral Consultant on August 13, 2009 at 8:50
Maybe? LOL! Yeah, I know...... I know, I resemble that remark also.
Permalink Reply by Mac Davis on August 14, 2009 at 4:05
OK, now that we've had our fun,

Does anyone know of any legal minimum royalty percentages?

How low and how high a lease percentage have you ever seen? I've heard of 1/8 (12.5%) up to 1/4 (25%) as a somewhat common range? What have you seen?
Permalink Reply by Grillin' - MmmMmm on August 14, 2009 at 7:08
I believe I've seen some 1/16's but that was a while ago and maybe not in Louisiana.
Permalink Reply by Skip Peel - Mineral Consultant on August 16, 2009 at 9:03
Mac. I can not comment on the legality question but I have seen leases with 27.5% and 30%. I have seen at least one state auction bid of 40% but it was unsuccessful as the bonus was low and the winning state bids that I have reviewed were awarded based on bonus. That 40% bid was back in the heady days of summer 2008 and I am quite sure that, in hind sight, the bidder is relieved not too have won.

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