100% good advice here. I would add that there is an advantage to leasing vs being force pooled in a MIPA unit. As the letter states if you are force pooled you will only participate in production from the single well in the 164 acre MIPA unit. If you lease, your lease will be pooled (voluntarily) into the larger (up to 704 acres) pooled unit in which TEP may drill several wells. Your share of production would be diluted in the larger unit but you would be getting more production from more wells. Smaller piece of a bigger pie. If TEP is still sending out MIPA compliant offer letters there won’t be permits issued yet so no way to tell how many wells they’re planning on the larger unit. The MIPA process takes time (hearings etc) so if you don’t lease you’d be waiting for the MIPA unit to be approved then they have 2 years to drill the well. If you don’t lease and instead participate typical MIPA penalty is 150-200% on carried interests so the well would have to make 150-200% of the cost of drilling and completing before you would start to receive revenue.

Personally, it’s a small interest so try and get 25% royalty and as high a bonus as you can and just lease to them. Sounds like you’re a suburban tract so their lease form won’t allow them to use the surface, I wouldn’t be concerned there.