It´s been a couple of years since we´ve had lease offer and this language concerning royalty payment is new to me. I would like to know the pros and cons of the two methods of payment mentioned for gas and casinghead gas in this section
To pay Lessor on gas and casinghead gas produced from said land 1. When sold by Lessee % of the amount realized by Lessee, computed at the mouth of the well, or 2. When used by Lessee off said land or in the manufacture of gasoline or other products, the market value, at the mouth of the well, of % of such gas and casinghead gas.
I assume if the lessee chooses one of the methods of payment it would choose the less amount to pay us.