We have family property in S8-T8N-R10W, within 1000' of recent proposed units for SWEPI. Most all neighbors around the property leased 4 years ago for about $100 an acre, we remain unleased with about 200 acres. A landman called about 2 months ago checking for lease status, since we have not heard we followed up, curious about status when we are so near the proposed units. I was told the surrounding leases were left untaken recently when offered to other exploration operators holding leases next door to us.  They stated they could not sell the leases. Apparently they believe the HS is at least 3000' deeper and is a shelfing (not sure if spelling correct or what it means) type formation so it is more difficult to  horizontal drill for consistent results, bottomline, HS maybe there but is deeper and more expensive to produce. They believe $2-$3K an acre bonus to be excessive for this section and they are not interested in pursuing open leases.  This is the first I have heard of this, however the nearby units must be real as we are actively being surveyed for a pipline ROW that seems to originate from the proposed units west of farm.

We appreciate any feedback.