Received a letter from Eckerd Energy with proposal. There are five options. (1)-participate in paying proportionate share. (2)-Lease or assign interest to Eckerd for bonus of $2000.00, 1/8th and 87.5% net revenue. (3)-L/A of $1500.00, 3/16th and 81.25%. (4)-L/A $500.00 1/5th and80.00%. (5)-$0.00, 1/4th and 75%. I have no idea about options. Thank you. Scott
Is there a question somewhere in there?
The letter is typically a precursor to a pooling action. Wait until the pooling order is issued. Then make an election.
This is a pre-pooling letter. You do not have to do anything with it. I do not sign them, but put them in my files. They are usually close to what the pooling options will be. Most of us would prefer the highest royalty option. The highest royalty option over many years of production on one or more wells usually far outweighs a one time higher bonus for the lowest royalty option. No guarantee that a well will be a success, but most horizontal ones are.