Does anyone have any information on this? It was given to me by Danick Resources as the reason for not increasing their offer of a lease bonus.
I believe they were referring to a "Favored Nation" clause in a lease. A lease with a Favored Nation clause requires the Lessee to pay the difference to the Lessor if they lease to someone else at a higher rate. It is pretty rare to find a lease where this clause to be excepted. It is more common that they don't want to give an owner more money to keep from having to pay the same amount in the forced pooling.
Thanks!