Practical Law Glossary Item w-027-4725 (Approx. 2 pages)
Glossary
Oil & Gas Lease Bonus (US)
A one-time payment to a lessor as consideration for signing a paid-up oil & gas lease. The bonus is generally not written in the lease. It is normally paid on a per net mineral acre basis and should be paid in a simultaneous exchange of the signed lease. Lessees commonly offer lower lease bonuses for higher royalty percentages and higher bonuses for lower royalty percentages.