Replies to This Discussion

Permalink Reply by Ben Elmore on March 23, 2011 at 10:51

When the primary term of the lease expires without a well drilled, unless there is some other savings provision in your lease that would extend it, or the lessee has an express option to extend it, the lease terminates and you are free to lease to another company at current rates. 

Permalink Reply by Chris on March 24, 2011 at 7:35

Is there only one tract of land on the lease? If you signed for multiple tracts and there is production on any tract it will hold the lease unless it has a Pugh Clause.

Permalink Reply by j garrett on March 24, 2011 at 7:46

Only if they are in the same unit.  One tract or even a part of one tract can be in a unit and held by production while the rest expires.

 

Permalink Reply by Ben Elmore on March 24, 2011 at 8:04

Actually Chris is right.  If there is no Pugh clause and the lease covers more than one tract, only one of which is included in a producing unit, that unit holds the entire lease.   The fact that the separate tracts are not contiguous makes no difference.

Permalink Reply by Joe Ed Jones on March 24, 2011 at 8:33

Thanks everyone for the info it helps . EOG needs to drill on our lease,they drilling all around E.Brown A-57 and not on our lease they are sucking gas from under that property from the side of the gas pockets   l.o.l.

Permalink Reply by Martha Lindsey on March 24, 2011 at 11:14

Have you checked the new plat of the McKinney well? I heard that it is now 900+ acres and includes a lot more people.

Permalink Reply by Joe Ed Jones on March 24, 2011 at 13:05

MARTHA: where did you get your info that the McKinney well is now 900 acres,all I can find on the permit is 225.7 acres ,what I can see is they missed us by a fence post on the plat map.

Permalink Reply by Martha Lindsey on March 25, 2011 at 5:45

Jo Ed: I was given a map by a landman. Check the Co. Clerk's office, vol 197, page 0460 (that's stamped on the map). I have a small acreage that looked good at 225 acres, but kind of disappears in 900. Oh, well.

Permalink Reply by James L. Williams on March 26, 2011 at 4:48

Martha: Eventually there will be one Hayneville well per 80 acres and probably one Bossier well per 80 acres (though the pool size could be different for the different formation) so it will work out in the long run.  If the price of natural gas goes up above $6/mcf there could even be James Lime wells. The only problem is, as John Maynard Keynes said, in the long run we'll be dead. But, our children will enjoy it.

Permalink Reply by Martha Lindsey on March 26, 2011 at 6:22

James, guess I'll just look forward to being a favorite grandmother.

Permalink Reply by Joe Ed Jones on March 27, 2011 at 4:32

How could I see a copy of vol. 197 page 0460 without going to the courthouse, can I get this on the enternet in real time or will Ihave to order it and wait weeks,Its to hard to drive to San Augustine court house for a day.