How critical is it to try and have top lease clause removed from a lease ? Is this something leasing companies will negotiate on or are they set in stone to have it in a lease.
I strike it from every lease. Havenāt had any pushback.
Thank you again for all your experience and expertise.
We have 160a in S3 10N11W in Caddo and just had someone call from Novo in OKC (?) stating they wanted to sell some sort of confusing ātop leaseā contract. Not sure what that is by itself - I thought it was just part of a larger offer and something you immediately get removed.
It is a top lease in time, not depth as they want to lease you before the first lease is over. You will only get a portion of the bonus money upfront. I am not in favor of them due to lots of reasons outlined in the attached article. Some folks like the risk.
An Overview of Recurring and Related Issues Involving Top Leasing.pdf (210.2 KB)
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Thank you for the reply and link! We donāt have an active lease on our land, which makes it curious. Oh well. We are basically holding for pooling at this point unless we get something interesting 