Thank you for your response. In the past I have received a very small amount of money from this 1 acre property. I doubt they will offer any more money, but I will probably ask them if they would change the lease to 3 years and no option.
I talked to the people from Aethon this morning and they told me that they wouldn’t consider a 1/4 interest in the James McCauley survey. They have offered a 1/5 royalty, but I won’t be leasing to them.
Our family basically have told Aethon, in a very polite way, what a joke 1/5th and $300 a net acre is on 3 or 4 properties they have called on in the last couple months. We had previously signed a lease with them earlier this year at around those numbers, but of course natural gas was at $1.85 an MCF. Now that it’s almost $6.00 an MCF things should change dramatically. A friend of mine is a landman in the East Texas area and has told me that the San Augustine courthouse is as crowded as it was in 2008. This statement leads me to believe that there are other companies going to be leasing soon in the area. I’m willing to hold out and wait as competition will soon drive up the price and royalty.
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