What is a Bonus Payment?
The term bonus refers to any up-front money paid to the owner of mineral rights in consideration for signing an oil and natural gas lease. A lease bonus is not considered a royalty because the payment is made before natural gas production commences and is determined without regard to any possible production. This payment is calculated on a per-acre basis. What is a Royalty Payment? The term royalty refers to a percentage of production paid to the owner of the mineral rights, based on the amount that Highland Rim Energy is paid for delivering natural gas to market. Royalty payments begin after oil or natural gas is produced and sold. These payments continue for the life of the well which could be 20-years or more. How and when are payments paid out? Bonus checks are typically paid within 10-business days of signing the lease agreement. Royalty payments begin only if your property is placed within a producing unit meaning, when and if oil or natural gas is actually produced and sold. The
The term bonus refers to any up-front money paid to the owner of mineral rights in consideration for signing an oil and natural gas lease. A lease bonus is not considered a royalty because the payment is made before natural gas production commences and is determined without regard to any possible production. This payment is calculated on a per-acre basis. What is a Royalty Payment? The term royalty refers to a percentage of production paid to the owner of the mineral rights, based on the amount that Highland Rim Energy is paid for delivering natural gas to market. Royalty payments begin after oil or natural gas is produced and sold. These payments continue for the life of the well which could be 20-years or more. How and when are payments paid out? Bonus checks are typically paid within 10-business days of signing the lease agreement. Royalty payments begin only if your property is placed within a producing unit meaning, when and if oil or natural gas is actually produced and sold. The
