I recently had a conversation with a rep of PetroEdge Energy about the possibility of leasing my mineral rights on a small (.02 acre) parcel in the Ellsworth district of Tyler Co. He went to great pains to tell me that the lease was a formality extended to owners of essentially worthless claims and offered me $100. The lease is for 5 years and applies to Marcellus as well as Utica shale deposits. Royalties would be 15% at the well head if the land was drilled. I could expect at most a couple checks/year of $25 each if there was a producing well on the land. He could not tell me exactly where the land is and I'm not familiar with family property in that area.

1 - What else do I need to ask him?

2 - Are these terms fair? If not, what else should I ask for?