Property Ownership
A North Dakota landowner has a right to minerals beneath their land. They lease these minerals to an oil company and receive a 'bonus payment.' This bonus is typically:
AA royalty payment from production
BA one-time payment the oil company pays the landowner to enter into the mineral lease✓ Correct
CA payment from the state for mineral extraction
DA tax credit for energy production
Explanation
A bonus payment in an oil and gas lease is the upfront payment the lessee (oil company) pays the lessor (landowner) in exchange for the right to explore and potentially produce minerals. It is paid at lease signing, regardless of whether production occurs.
Related North Dakota Property Ownership Questions
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