Buddy,
My only criticism with this concept is that I, the mineral owner, might not mind for the Oil Co. to wait for pricing to improve. I understand that a bird in the hand might be worth two in the bush, but if the Oil Co. can go ahead and drill 2 months ago (at under $50/BBL oil), but wait to complete until now (at $60/BBL oil) or 6 months from now (at maybe $70/BBL oil?), I would personally be happy to wait and not penalize them for their prudence. As we all know, with shale wells, most of the production comes in the first few months/first year, so it is incredibly important to have the highest commodity prices during that time. I would personally not want to disincentivize an Oil Co. from waiting on more favorable prices. And if the Oil Co. doesn’t complete before the end of the primary term, the lease is released or extended (although, again, I personally might be willing to extend the lease to potentially mutually benefit both parties if oil prices are rising or are expected to rise). All just my opinion, but it is a good concept.
Thanks!