We were part of the Smith Goshen Group Lease with Rice that expires in approximately one year. Rice sold my lease to Ascent about a year ago. Got a call this week from Purple Mountain Land Management saying he was working with a group that includes Rice, Ascent and XTL wanting enter into new leases right away, not wait for the expiration. He offered $500 an acre per year on one-year leases with options to renew each year for a 5 year period. Does anyone else know about this? The money comes out just short of the original lease if it went for 5 years but obviously the terms and conditions are not nearly as good for the owner as in the original 5-year lease. Since we all expire at about the same time, is there any group effort underway, similar to what we did 4 years ago? Note, my land is not in Smith or Goshen townships but rather in Pease. Is this more the norm now or should I be holding out for something more akin to the old lease?
This sounds like a "Top Lease" by a third party for less than half of the money that you originally were paid. They are only offering you $2,500 over 5 years. It might be a scam. You may want to wait and reform your landowners group next year. Try contacting: Larry Cain