Received proposal to drill "a well to a depth sufficient to test the Arbuckle formation...spacing unit will be a 640 acre tract...you are the owner of an oil and gas interest in this unit...elect one of the following options:
1. lease for a cash bonus of $300/net mineral acre, 1/8th royalty, 3 year term
2. lease for a cash bonus of $200/net mineral acre, 3/16 royalty, 3 year term
3. Participate in well... (We are not considering this)
The undersigned hereby elects Option No. ______.
(We don't own surface rites, just the mineral interest.)
If we sign this are we legally bound to sign a lease only with them?
How long before "Forced Pooling" would occur?
I read that for "Forced Pooling" we would get the best deal that anyone received.
Does that include the cash bonus, royalty and the terms and clauses in the lease?