Show your work. In my experience, a 1/4 royalty is unheard of unless the royalty is burdened with the cost of chillers, separators, transport, and other enhanced recovery costs that traditionally were considered as LOE. All of that notwithstanding, the idea that this will raise revenue is illusory. Bidders will consider the increased royalty costs due to the higher royalty rate when preparing their bids, and will reduce their lease bids accordingly.
I’ll leave you to that.