What does the proposed SWN

Amendment mean to you?

Why is SWN saying they need a 640

acre unit?

Don’t they already have that?

Current Lease Proposed Amendment

Minimum of 1 horizontal well

to develop160 acres

Minimum of ONLY 1 well to

develop640 acres

Currently…160 acres x 4 wellheads = 640 acres

160 acres 1 well head160 acres 1 well head160 acres 1 well head160 acres 1 well head

TOTAL = 640 acres

TOTAL = 4 well heads

TOTAL = 640 acres

TOTAL = 4 well heads

Currently Proposed Amendment

Minimum of1 horizontal well to develop every

160 acres

Minimum of ONLY 1 well to

develop 640 acres

This means SWN can hold more acres with less wells.

If the amendment is approved…

160 acres 1 well head

160 acres 1 well head

160 acres 1 well head

160 acres 1 well head

TOTAL = 640 acres TOTAL = 4 well headsTOTAL = 1 well head?

You do the math!

160 acres x 4 = 640 acres

considered developed with a

minimum of 4 well heads!

What we have:

640 acres x 1 = 640 acres

What we’ll lose:

considered developed with

ONLY 1 well head!

What does this mean?

SWN says… a larger unit means more royalties for you.

NOT TRUE!A larger unit means

more landowners sharing LESS money!

How are you getting less

money?

Currently…

Natural Gas Royalty Estimate

Acres 25

Average wellhead price $2.35

Average well production rate 1.5

Royalty rate 21%

Number of acres in the unit 160Expected royalty payment (per month) $3,469.92

If the amendment is approved…

Natural Gas Royalty Estimate

Acres 25

Average wellhead price $2.35

Average well production rate 1.5

Royalty rate 21%

Number of acres in the unit 640Expected royalty payment (per month) $867.48

Currently $3,469.92

75% decrease!

With the amendment

$867.48

YOU LOSE $2,602.44

See for yourself!

geology.com/royalty

What else could happen if the amendment is

approved?

• SWN could hold your land beyond the lease expiration or “primary term” without an extension payment.• You give up your right to notifications.• Your land could be pooled in a

“noncontiguous” unit (one that isn’t next to you).• You give SWN the future right to amend

your lease whenever they want… without telling you.

What can we do NOW?

• Know your options before signing the amendment• Tell your neighbor about this wiki• Keep in contact with other

landowners• Check this wiki page for updates–Including a meeting date in the near

future!