We have been offered a new lease contract for our parcel at $500 per acre with a 3/16th royalty. This is good. However, the new contract still contains all the post production cost language, with the exception of an Exhibit A at the front. Exhibit A refers to a stand-alone page at the end with a paragraph reading,
“Payments of royalty under the terms of this lease shall never bear or be charged with, either directly or indirectly, any part of the costs or expenses of production…”
Does Exhibit A replace and invalidate the post production liability retained in the contract? Does this just save them having to rewrite the contract?
I would like to take this before a lawyer but I was giddy at the new terms and said I would sign with those corrections. Sorry for that now…
Thank you for your help!