Some years ago, there were many complaints that landowners had not been paid their bonus and the lease was filed of record.
To help with that situation, I am developing a clause for my Professional Lease Form that reads as follows:
7. PAYMENTS TO LESSOR. Lessee covenants to pay Lessor as follows:
(A) SIGNING BONUS: Lessee agrees to pay Lessor a signing bonus in the amount of __________________Dollars ($_________) by company check or in United States Currency. The bonus payment shall be paid to Lessor at the time that Lessor delivers this Lease to Lessee. All bonus payments, rentals and royalty payments made to Lessor under this Lease are non-refundable. Failure by Lessee to pay the bonus payment as set forth above shall render this Lease null and void. Should Lessee file this Oil and Gas Lease of record, or a notice or memorization of same prior to paying the signing bonus as provided above, Lessee shall pay to Lessor treble the amount of the signing bonus as liquidated damages and the lease shall continue to be null and void and of no further force or effect.
The highlighted area in red can be changed to fit a particular situation, i.e. on or before November 14, 2014, etc.
Best,
Buddy Cotten