LEASE BONUS. As a contemporaneous exchange upon execution of this Lease, Lessee shall pay RGGS a bonus of [*] as consideration for this Lease (the “Bonus”). The Bonus is not refundable under any circumstance
LEASE BONUS. Initially, the lessor’s primary concern involves the amount of the lease bonus to be paid for his/her execution of the lease and the amount of royalty to be stated in the lease. Lease bonuses vary depending upon the geographical area and production history or potential production thereunder. But, generally, said bonus is calculated on a net mineral acreage basis. Thus, if the landowner owns a hundred (100) acres, his/her bonus will be: 100 times “x” – “x” being the amount paid per net mineral acre. Many oil and gas companies pay lease bonuses before an extensive title search has been conducted. In a rush to acquire leases in a certain area and beat the competition, companies will use cursory title information to acquire initial leases. As a protection for this practice, companies will pay the lease bonus by draft conditioned on certain events. For instance, the draft may contain a provision that the draft will not be honored until title has been approved. Texas courts interpreting such instruments have upheld the oil and gas companies’ failure to honor bonus drafts.5 As a result, savvy landowners are now requiring unconditioned check payments upon execution of an oil and gas lease. In addition, cursory title searches do not always render accurate net mineral acreage calculations. Thus, oil and gas companies may overpay or underpay a landowner but not discover this fact until comprehensive title examinations are conducted. More and more, oil and gas leases contain provisions that protect the landowner’s initial bonus. For instance, it is
LEASE BONUS. The Lessee shall pay the Lease Fee, prior to each anniversary of the Effective Date during the Term. The Lease Fee is non-refundable.
LEASE BONUS. Upon occupancy, Landlord shall provide $40,308 to Tenant as a lease bonus ("Lease Bonus") for entering into this Lease Agreement.
