Encana Lease Offer - Amite County
Oh, how things have changed!!I recently received a forced integration letter on the Powell 10H Unit in sections 3, 10 and 15, T1N-R5E Amite County. This letter offers a lease of 15% royalty interest with a $75 per acre bonus for a 5 year term. In June of 2015 I received the same letter offering 18.75% RI with $200 bonus for a 3 year with 2 year option.
Does $75 per acre with 15% royalty interest actually constitute a "good faith" offer now??? Anyone else receive this offer?
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Permalink Reply by Skip Peel - Mineral Consultant on -
A non-consenting mineral interest does not figure into the NRI as it is not a royalty interest. Yes, the operator would own 100% of the non-consenting party's prorated production until their portion of the well cost is recovered 3 times over. With a 300% risk penalty few TMS wells will ever PO.
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