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Permalink Reply by wyalusing jim on April 12, 2013 at 8:25am

translated into leasing terms, if you want to push the envelope to it's limit, be prepared for the possibility of having overplayed your hand.

i know many folks here in bradford county who for one reason or another decided not to lease when leasing peaked here in '09.

some settled for a little less as things went downhill and some decided to ride it out to the bottom.

some who took it to the bottom are now offered half as much royalties and less than 1/6 of the bonus they once were. in the worst of those cases, it's now a take it or leave it proposition with producing wells and units that if they were leased, they would be participating in.

in some cases, half a million in bonus gone, and hundreds of thousands in their (otherwise) royalties partly being paid to their neighbors since the unit is smaller for them not being in it.

i would never tell anyone what they should do as far as leasing. hold out for the moon if you so desire, but know that any hill you climb has the other side as well, and what goes up, may also go down.

wj

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