Just received a letter from CLR regarding this location and proposed well in Garvin Co. requesting signing a lease or participating in the well. I have never participated in a well before. I own very little. .75 acres I think. Question, should I consider participating? As far as signing a lease, they are not offering 1/4. If and when it is pooled, would there then be an option for 1/4? Any insight would be appreciated. Thanks!
Newbies are probably not good candidates for participation without excellent legal help, accounting help and liability insurance. All fairly expensive for .75 acres.
The 1/4th royalty is not being offered as often, but if you can get a 1/5th, then that is still good. Pooling will have the same bonus/royalty pairs as a lease. The clauses in the lease are the most important thing to understand. If you have not leased before, it would be wise to get legal counsel to improve them more to your favor. Pooling is a good alternate if you cannot come to a reasonable lease.
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