Paladin Land Group is an agent for an operator. Rosebud, Todco and Continental Resources (likely operator) are also leasing heavily in that township. Most leases in the area would probably be for three years. Many of us would take the 1/4th royalty as a first choice. Or the 1/5th if you wanted some cash up front. Continental has filed a horizontal permit in the township to the east-planned for the Woodford.
The lease clauses are the most important issue, so recommend that you get a good oil and gas attorney to review the lease. Most drafts are not in the mineral owner’s favor and need significant edits. If you cannot get an acceptable lease, then pooling has its own merits.
I would not sign any intent letter since I would not want my signature on a document before reading the lease that they are proposing.