# Question regarding primary term and rental - oil and gas lease
**URL:** https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588
**Category:** Oil and Gas Leasing Help
**Created:** [November 18, 2020, 2:44pm UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588 "2020-11-18T14:44:36Z")
**Posts on this page:** 7
**Page:** 1
### Author:  [@Patrick](https://www.mineralrightsforum.com/u/Patrick)
#### Post date: [November 18, 2020, 2:44pm UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588/1 "2020-11-18T14:44:36Z")
Appreciate if someone could help with this question:
A grants B a 5-year, paid-up lease dated February 24, 1995, covering an area of 40 acres. The effective date is March 11, 1996. The lease was recorded June 20, 1996. B paid $50/acre.
**1 - what is the primary term? From XXX to XXXX** _(Mar 11, 1996 to midnight Mar 11, 2001??)_ **2 - when the first rental is due?** _(Mar 11, 1996???)_ **3 - what bonus was paid?** _($50 x 40 acres x 60 months = $120,000?)_
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### Author:  [@TODD\_M\_Baker](https://www.mineralrightsforum.com/u/TODD_M_Baker)
#### Post date: [November 18, 2020, 2:53pm UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588/2 "2020-11-18T14:53:34Z")
There are no rentals due. This is a paid-up lease that means the rentals were paid in the original bonus.
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### Author:  [@TODD\_M\_Baker](https://www.mineralrightsforum.com/u/TODD_M_Baker)
#### Post date: [November 18, 2020, 3:02pm UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588/3 "2020-11-18T15:02:21Z")
The bonus is $54 x 40 acres. The extra $4.00 is the $1.00 per acre rental payment. That is in theory. Many companies state they are paying $50 per acre that includes the rentals, so the bonus is really $46 per acre.
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### Author:  [@Patrick](https://www.mineralrightsforum.com/u/Patrick)
#### Post date: [November 18, 2020, 3:05pm UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588/4 "2020-11-18T15:05:09Z")
> [@TODD\_M\_Baker](#):
>
> There are no rentals due. This is a paid-up lease that means the rentals were paid in the original bonus.
In this case, when was the original bonus paid? February 24, 1995, or March 11, 1996?
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### Author:  [@TODD\_M\_Baker](https://www.mineralrightsforum.com/u/TODD_M_Baker)
#### Post date: [November 19, 2020, 3:01am UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588/5 "2020-11-19T03:01:34Z")
When was the bonus paid? Only you know that.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [November 19, 2020, 2:02pm UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588/6 "2020-11-19T14:02:29Z")
No one but the original lessor knows the exact day the bonus money went in the bank, but look at the signature date for the lease down by the notary and it probably would have been paid sometime after that. The effective date is the stated date. Has nothing to do with when the lease was actually paid.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [February 16, 2021, 2:44pm UTC](https://www.mineralrightsforum.com/t/question-regarding-primary-term-and-rental-oil-and-gas-lease/59588/7 "2021-02-16T14:44:43Z")
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