As things stand at the moment, here are our options:

1. Sign the standard lease form offered by one of the leasing companies (Lessee). You will
   receive the base offer of $3,000 per acre and 25% royalty. However, you are granting the Lessee the power to pool up to 704 acres into a gas unit, which greatly dilutes your revenue. There are other terms and provisions besides pooling on their form that need to be added/amended, including post-production costs, title warranty, recourse against Lessor, Mother Hubbard clause, depth limitation, shut-in limitation, Lessor indemnity, implied covenants of Lessee, etc.
2. Hire an oil and gas attorney to represent you in negotiating a lease. You will more than
   likely receive better terms than those previously offered, but your up front attorney fees could be substantial.
3. Join a group of Crestwood mineral owners to work with an oil and gas attorney in an
   arrangement like the one currently being negotiated by the Crestwood Mineral Leasing
   Committee. This arrangement costs you nothing “out of pocket.” By bargaining as a collective
   body, we will likely get superior terms, provisions and conditions (i.e., pooling limited to 80 acre
   proration units within Crestwood Addition) than those previously offered by Lessees. The
   attorney’s fee will be paid from a sharing arrangement of 25% to the attorney and 75% to the
   mineral owner of all additional bonus money above the $3,000 per acre and all additional royalty
   above the 25% presently being offered.
4. Participate your mineral interest in the well as a working interest owner and be subject to all
   costs, risks, liabilities, and benefits associated therewith. This would be negotiated between you and the Lessee, who will try to avoid this type of arrangement if at all possible. If not agreed to by the Lessee, this option could leave you out of the gas unit altogether.
5. Do nothing, sign nothing, and get nothing.

Questions? Call Tom Roberts at 817-625-4475.