Lease vs sale
If you sign a mineral deed, the minerals (or that fraction) are gone. If you sign a lease, you still own the minerals subject to the lease. Bonus is paid to get the lease; royalty is your share of production if they drill and the well pays. Mixing a “purchase” letter with a lease form is a common confusion when both arrive in one week.
The numbers people notice
| Term | What to check |
|---|---|
| Bonus | Paid per net mineral acre, often after title. Confirm NMA they will pay on. |
| Royalty | Fraction or percent. Cost-free language, post-production deductions, and whether it applies to all products. |
| Primary term | Years they can hold without production. Options to extend are extra consideration. |
| Pooling / unit | How large a unit they can form and whether your tract can be diluted. |
| Pugh / depth | Whether undeveloped depths or acreage release when only part of the tract is producing. |
| Shut-in / HBP | How they keep the lease alive with shut-in payments or a well that barely produces. |
Location still drives the draft
Haynesville, Permian, and Appalachia letters do not share one “standard royalty.” Use what to expect by basin, then negotiate the printed form — not just the bonus line. Surface-use, indemnity, and warranty clauses are easy to miss when the envelope looks like a check.
How to respond
You can acknowledge the offer without signing. Ask for a redline or a term sheet (bonus, royalty, term, pooling, depth) in writing. If a landman wants to “meet at the bank with a notary,” that is a close, not a discussion. How to respond and offer review exist so the first signature is not on their pad.