There is always the possibility that a discovery will be all or mostly on a single large tract of land. In this case, it is better to negotiate from a position of uncertainty. If the Lessor is almost positive that there is a potential discovery on their land, as they will when the option is exercised and lease negotiations begun, the price of poker is sure to go up. While this can be tolerated with small tracts that will make up only a small part of a potential unit, the chances of having an entire unit held for ransom is intolerable. In this case, the time and effort spent negotiating the option and lease concurrently will save money.
Small landowners are often in the shoot area by the bushel.
Companies want options taken in as timely a fashion as possible, but if a lease is attached to every option taken negotiations can be interminable. It takes up precious time and money, and competitors and interlopers do lurk. After the attorneys are finished playing badminton with the lease form and its amendments, time that could have been spent acquiring other options is forever lost. Normally, the odd ten or fifteen acre tract will not mean a lot in the makeup of a unit, no matter what the terms turn out to be. This is especially true if a deep gas or horizontal unit is anticipated.