Can you help me understand this? We received a letter from Citizen ahead of a forced pooling order that asks for a selection for the Proposed McBee 1H-10-15. The selections are 1) Participate in the drilling, 2) Lease or assign your interest with bonus of $750 and 1/16th royalty, delivering an 87.5% net revenue interest, and 3) Lease or assign your interest to Citizen accepting a bonus of $500 and a 3/16th royalty interest, delivering an 81.25% net revenue interest. Thank you.
Ann: Citizen has filed a force pooling for the unleased minerals owners in Section 10 & N/2 of Section 15. The hearing is March 7. The offer letter sets forth what Citizen is offering to lease your interest. Most likely those will be the same terms that are included in the Order when it is issued. The less royalty you choose, the greater the lease bonus & vice versa. You can also chose to participate in the drilling of the well by paying your proportionate share of the costs to drill, complete & produce the well. If you chose not to lease to anyone, Citizen or otherwise, you will have 20 days after the Order is signed to make your election as to which option you think is best for you.
Good Luck.
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