I received an offer to lease and the front page reads like this .
They want to lease for $500.00 per net mineral acre signing bonus, a 25% royalty, with a primary term of 3 years , with the option to extend the primary term for an additional two years.
This I understood .
Next page is where I need help understanding what it means.
This is on the payment request form.
Lessor, for and in consideration of Ten and No/100 dollars ($10.00) and other good and valuable consideration
Paid by Lessee, the receipt and sufficiency of which are hereby acknowledged has executed a Paid-Up Oil and Gas Lease dated effective June 8, 2017. (The “Lease”) , by which Lessor has leased all of its interest in and to the oil, gas, and all other minerals in, under, and which may be produced from the following described land (the
Leased Premises") to Lessee.
This is what I need explained to me so I understand what is to happen.
I would appreciate anyone explaining the $10.00 part to me.