# The term paid-up on a leese offer
**URL:** https://www.mineralrightsforum.com/t/the-term-paid-up-on-a-leese-offer/13075
**Category:** General Mineral Rights Discussion
**Created:** [August 20, 2013, 1:31am UTC](https://www.mineralrightsforum.com/t/the-term-paid-up-on-a-leese-offer/13075 "2013-08-20T01:31:05Z")
**Posts on this page:** 5
**Page:** 1
### Author:  [@private](https://www.mineralrightsforum.com/u/private)
#### Post date: [August 20, 2013, 1:31am UTC](https://www.mineralrightsforum.com/t/the-term-paid-up-on-a-leese-offer/13075/1 "2013-08-20T01:31:05Z")
What does the wording 'Paid-up" on a Leese offer mean?
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### Author:  [@charles\_s\_mallory](https://www.mineralrightsforum.com/u/charles_s_mallory)
#### Post date: [August 20, 2013, 1:40am UTC](https://www.mineralrightsforum.com/t/the-term-paid-up-on-a-leese-offer/13075/2 "2013-08-20T01:40:40Z")
The term "Paid-up" means that no rentals are due for failing to drill a well during the primary term of the lease. The lessee can sit on the lease until the lease expires.
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### Author:  [@private](https://www.mineralrightsforum.com/u/private)
#### Post date: [August 20, 2013, 1:44am UTC](https://www.mineralrightsforum.com/t/the-term-paid-up-on-a-leese-offer/13075/3 "2013-08-20T01:44:53Z")
Thank you Charles. Is that a bad thing to have in a Leese? or is it common? Does it matter what the net min ac is?
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### Author:  [@r\_w\_kennedy](https://www.mineralrightsforum.com/u/r_w_kennedy)
#### Post date: [August 20, 2013, 2:21am UTC](https://www.mineralrightsforum.com/t/the-term-paid-up-on-a-leese-offer/13075/4 "2013-08-20T02:21:15Z")
The paid up lease is I think the most common form of lease these days. In the old days with yearly rentals the lessee could lease acres for 2 or 3 years and be late with the lease payment by days in one year and lose the lease and have to lease it again, if they can, possibly at higher rates. With a paid up lease, the lessee can't lose the lease in the primary term of however many years, it's already paid for, paid up. If a well is drilled and production obtained both types of leases move into the secondary term of as long thereafter as oil, gas or both are produced. Pay careful attention to shut in clauses and payments, which can maintain a lease in force without production, sometimes for as little as $1 per net acre per year for decades.
private said:
> Thank you Charles. Is that a bad thing to have in a Leese? or is it common? Does it matter what the net min ac is?
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 1:19am UTC](https://www.mineralrightsforum.com/t/the-term-paid-up-on-a-leese-offer/13075/5 "2018-08-15T01:19:41Z")