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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on May 13, 2013 at 15:40

The wording "Ten Dollars and Other Valuable Considerations" is legal boiler plate.  It is not the bonus paid to the lessor.  The $500 bonus offer is pretty standard at this time.  The royalty and the other lease terms are what require further negotiation. 

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Permalink Reply by Bar ISW on May 14, 2013 at 2:21

I too was contacted by Encana with a lease offer in S. Bossier behind Lucky estates as I have 7 acres  (Sec 20, T17N, R12W) with the same $500, 20% & 3 Yrs and a deadline to decide by the end of this week. Talked to neighborsin Lucky Estates and they had initially signed 3 yrs ago and then re-newed this fall at $2000 an acre? Havent' seen the paperwork but definitely want a "No Drilling Clause". Babs

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landownerPermalink Reply by Bobi Carr ("parker") on May 15, 2013 at 14:49

Sounds like a reasonable price considering that no one else seems to be interested in the area.  I have 285 acres in the area and leased last year.  I wanted more but no one else was interested in paying other than them, I felt like it was a GREAT offer compared to ZERO.  Gas prices are still low and don't look to be much higher for the foreseeable future.  I doubt that any other company will lease at those prices.  Sometimes SOMETHING is better than NOTHING.

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landownerPermalink Reply by Bobi Carr ("parker") on May 15, 2013 at 14:58

Let's hope that prices actually get to $6.00 by 2020.  

http://knoema.com/ncszerf

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