Carl, simple economics catches my eye. 18 months is not an option, it is a short lease. 18 months is half of the three-year rental period they say they are at work. Could you rent your minerals for 3 years for $50 an acre? I doubt it. So why choose them for a year and a half for $25? 5Quate, however, the real value to the landowner of this “benefit” of the seismic option, as other companies will recognize that your business after evaluating its seismic, did not want a lease on that surface. Tell them seismically only seismically without option, when they come back after the seismic, you know they want it and it`s time to negotiate on that $75 per hectare. Whenever two or more labour owners decide to share the risk of drilling, development or operations related to oil and gas extraction, they enter into what the industry calls a Joint Venture Agreement or simply an enterprise agreement. The JOAjoint Enterprise Agreement generally provides that one of the parties operates as an operator of the parties in the common territory covered by the JOAjoint Enterprise Agreement. In addition, the operation for which the JOAjoint operating agreement was concluded (drilling a well) is defined and how costs and revenues are distributed, assessed and accounted for. In addition, it provides for the rights of each party to the production received and determines how leases are acquired, maintained, transferred and sold. You can give up your rental option during these 18 months with never more than postage and pocket change of your own money in the deal or in danger to another person with profit. Many in oil and gas make money from other peoples` assets, it is quite legal, but what do you think 19 months now, if you have not received anything? Another option is to grant them a non-exclusive seismic authorization without an option.
— content of the option agreement. While there will be obvious similarities between the content of a tenant`s seismic option, as discussed below, and a seismic option from a lessor, the differences between the options and objectives and the nature of the options will also result in significant differences between the agreements. By taking a seismic option, your company can attach the entire surface until sufficient data can be saved to assess which parts of the country appear to be for oil or gas. While the possible bonus paid for the parts of the wing “selected” for the lease is generally higher than the bonus per hectare that would have been paid for an initial lease on the entire ranch, the sum of this larger bonus per hectare will be significantly less than the total premium per hectare only on the high area , in addition to the option tax. which would have been paid if the entire ranch had been rented.