# Current lease bonuses
**URL:** https://www.mineralrightsforum.com/t/current-lease-bonuses/12481
**Category:** Andrews County, TX
**Created:** [November 3, 2013, 10:58pm UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481 "2013-11-03T22:58:38Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@Polly\_Dross](https://www.mineralrightsforum.com/u/Polly_Dross)
#### Post date: [November 3, 2013, 10:58pm UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/1 "2013-11-03T22:58:38Z")
Once again my siblings and I have an offer to lease our 5 mineral acres in Andrews County (S/2 of Section 2, Block A-44, Public School Land Survey). We are being offered at $250 bonus per acre by Clearfork Resources. Can anyone advise us on the going bonus rate these days in Andrews County? I believe this will be for 3 years/1/4 royalty. In the past we have asked for a Pugh clause and continuous drilling clause to be included in the lease agreement. Do we also need to verify that this is for oil & gas only with no post production expenses and no warranty clause and no option to renew?? Thank you for any assistance you can give us!
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### Author:  [@Donald\_Skotty](https://www.mineralrightsforum.com/u/Donald_Skotty)
#### Post date: [November 4, 2013, 12:29am UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/2 "2013-11-04T00:29:51Z")
Nothing less than $500 per acre and 25% royalty. I recently accepted those terms in PSL A-33 where I had offered as much as $650.
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### Author:  [@Polly\_Dross](https://www.mineralrightsforum.com/u/Polly_Dross)
#### Post date: [November 5, 2013, 9:11pm UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/3 "2013-11-05T21:11:12Z")
Thanks so much! Does anyone know how important the Pugh clause and continuous drilling clause are? Also, should we not have an option to renew?
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### Author:  [@Donald\_Skotty](https://www.mineralrightsforum.com/u/Donald_Skotty)
#### Post date: [November 5, 2013, 9:55pm UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/4 "2013-11-05T21:55:56Z")
Polly,
In my opinion, the Pugh and continuous drilling clauses are important if you have a lot of gross acres (more than 320), because they prevent the lessee from holding by production a large number of acres when they have performed very limited drilling (like 1 well). I believe you are better off without an option to renew. The option simply locks you into future bonus rate, at the lessee's option -- typically at today's rate. There is an option that I like, which is priced at x% more than the current bonus (for example, 150% of the current bonus). That option incents the lessee to drill during the primary term, and rewards the lessor if the option is exercised.
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### Author:  [@Polly\_Dross](https://www.mineralrightsforum.com/u/Polly_Dross)
#### Post date: [November 5, 2013, 9:59pm UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/5 "2013-11-05T21:59:24Z")
Thanks again. With only 5 acres, I think we don't need to worry about the Pugh and continuous drilling clause. What about the Shut in Royalty clause?
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### Author:  [@Donald\_Skotty](https://www.mineralrightsforum.com/u/Donald_Skotty)
#### Post date: [November 5, 2013, 10:06pm UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/6 "2013-11-05T22:06:24Z")
Polly,
Shut in royalty clause is good regardless of the number of acres. I would also give some thought to market value royalties (vs. "proceeds" which is the standard producers 88) and "no post production deductions." On the latter make it clear, the only costs you will bear are your share of severance tax and ad valorem tax, "regardless of the point of sale." When you accept a royalty paid at the "wellhead", you open yourself up to potentially abusive deductions.
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### Author:  [@Polly\_Dross](https://www.mineralrightsforum.com/u/Polly_Dross)
#### Post date: [November 6, 2013, 12:12am UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/7 "2013-11-06T00:12:23Z")
Thanks so much for all your help!
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 1:10am UTC](https://www.mineralrightsforum.com/t/current-lease-bonuses/12481/8 "2018-08-15T01:10:01Z")