Bonus Vs. Royalty: Oil And Gas Landowners' Dilemma

Law360, New York (June 27, 2013, 12:32 PM EDT) -- The primary document which governs the contractual and real property rights, privileges and obligations of the landowner (lessor) and the energy company (lessee) is the oil and gas lease (O&G lease). Before a landowner grants an O&G lease to a lessee, he should carefully consider some key provisions to protect himself and to maximize economic benefit.

This article will discuss in greater detail the key provisions in an O&G lease regarding bonus and royalty payments as briefly discussed in "Top Issues Facing Landowners of Oil and...
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