There’s “more to the story”, of course. My minerals are currently subject to a forced pooling order in a 1280 acre unit. So there is no lease involved at this time and Hess is paying the average royalty while the well is gimping along and will probably never reach 150% payout (which I don’t want anyway). So now they come in and are forming a 6 section unit which partially overlaps the existing unit and have proposed an oil and gas lease at $1,000/acre and 1/5th royalty on a ridiculous lease form. With the tiny mineral position, this doesn’t really justify much out of pocket expense and also doesn’t appear from internet research there is much one can do, even if filed a protest against their proposed terms in a pooling hearing.
Ah, then it may be a different formation if offering a new lease. You can try to negotiate on the lease clauses, but the 1/5th is pretty good.
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