Recently was contacted by a major Oil & Gas producer targeting the TMS (Tuscaloosa Marine Shale) and offered a 1/5th royalty and $325.00 per nma. Their letter gave us two options: participate or take THEIR lease. If I don't respond to their letter they will request to the Ms Board at the pooling hearing that we incur alternate risk charges. I've been told that allows the company to recover 300% their cost before one would receive their royalty??? Is this correct???
Anyone else, been burdened by alternative risk charges???