# Lease Provisions

**URL:** https://www.mineralrightsforum.com/t/lease-provisions/22607
**Category:** Dawson County, MT
**Created:** [October 21, 2011, 3:13am UTC](https://www.mineralrightsforum.com/t/lease-provisions/22607 "2011-10-21T03:13:25Z")
**Posts on this page:** 3
**Page:** 1

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### Author: ![Jackie\_Ungrodt](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/j/46a35a/32.png) [@Jackie\_Ungrodt](https://www.mineralrightsforum.com/u/Jackie_Ungrodt)
#### Post date: [October 21, 2011, 3:13am UTC](https://www.mineralrightsforum.com/t/lease-provisions/22607/1 "2011-10-21T03:13:25Z")

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We own less than 100 net acres in Section 18, Township 20 North, Range 52 East. Received offer $100/A for 5 year lease plus 15% royalty. Current proposed lease and prior leases over the years are on form: “Producers 88 paid up”. (Offer and Lease from Wasaabee Energy)

One of the clauses in the lease provides that lessee has free use of oil and gas produced if used for lessee’s operations; this is a strange provision to one not familiar with the energy business. Does anyone see a problem with that clause?

Also, I’d like more royalty - 17.5%? - and perhaps trade off on the base rent. After all what’s a few dollars on less than 100 acres, compared to locking royalty in “forever” if exploration is successful.

All comments welcome. Thanks.

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### Author: ![Jim\_Sheridan1](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/j/ee7513/32.png) [@Jim\_Sheridan1](https://www.mineralrightsforum.com/u/Jim_Sheridan1)
#### Post date: [November 15, 2011, 6:49pm UTC](https://www.mineralrightsforum.com/t/lease-provisions/22607/2 "2011-11-15T18:49:07Z")

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More royalty is available and you are being lowballed on it. 88 lease standard for the industry but you need a Pugh clause and “Shut In” clause on it…your landman should agree to that…if he doesn’t, you should shop.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 4:09am UTC](https://www.mineralrightsforum.com/t/lease-provisions/22607/3 "2018-08-15T04:09:18Z")

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