Rockhound, agree that lose some marketability and value with a dry hole when dealing with marginal companies, and I like the concept of the upfront payments. Couple of questions. 1) do you have a draft of the letter presented to company that you can share? 2) how do you suggest the previous payments be handled if well is commercial? Refund monies or let lessee take from proceeds of the well that are due the mineral owner? 3) assume you only use when well will be first in a unit. What about when have wells producing and new drilling company moves in that may not put out the effort needed and end up with a dry hole? Thanks for your comments.
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