The basic lease agreement involves an initial bonus payment for signing the lease, a royalty percentage to be paid if natural gas or oil is found and produced from the property and term (primary term), a time frame within which the energy company has the option to begin operations. If natural gas or oil production does occur, the lease continues in effect for as long as the well produces, which could be for decades.
Commonly, the term bonus refers to the up-front money paid to the owner of the mineral rights in consideration for signing a natural gas and oil lease. It is generally calculated on a per-acre basis, and the amount paid depends on the amount of mineral acres owned by the lessor.