That's absurd, of course, but that is his asking price, not what he'll accept. That said, I could see Lohse getting 3/$40MM or even 4/$50MM. He's actually been pretty decent the last two years: 30-11, 3.11 ERA, 6.1 fWAR - good for 34th among all major league starters. I see him as a solid #3 pitcher. But he is 34 years old.
He's better than Vargas, Blanton, and probably Hanson, although not better enough to warrant spending more money on him.