Failure to abide by lease terms will rarely void a lease unless that is written into the lease. Otherwise it is a question of proving actual damages. It seems that the company has approached you about negotiating payment for unsigned the surface for a well pad. Will you be receiving royalties from these wells (on lease) or are these off-lease wells and you will not be getting any royalties? Damage payments can be significant and are taxable income to you. Consider the size of any well pad as being paid at $X per acre or per sf. Separate damages for roads, pipelines, electric lines, etc. Do not grant in perpetuity, but only while the ABC wells are producing from your minerals. Best to get legal advice on the contractual terms and what is being charged in your area. There are lots of issues which are discussed on threads on this site.
1 Like