Section 19, 8N, 8W

recent lease offers have varied significantly-right now family members are wanting to lease at 2,150, 1/5, but with a 2 year extension at 150%, but they want an answer right away. Interest is not as active as a few months ago, but there is another co interested at 1,750 with no extension. Everything i hear is to never do an extnsion-any comments, suggestions, etc? Thanks

Never do an extension !!!! Also no deductions, 1 year shutin cumulative, but I don't even discuss these contact items until the bonus/ royalty amounts are settled. Once the price is set -- give them your Exhibit A to take or leave ---

We use what you already indicated. Two year extension only if 150%. We also require a filing of record. They generally decide not to do an extension when we request the higher bonus, which is also fine. I think what we're trying to defend ourselves against is missing large increases in prevailing lease bonuses. Either policy seems fine to me, and that was the recommendation of our oil & gas attorney a few years ago, as well. YMMV.