We have an old lease that is hbp at 1/6th and we are in the heart of HS. We have been told by several people that we need to go back and renegotiate our existing lease. Is this ever done and how would we go about doing this.

Tags: Lease, Renegotiation

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Herman:

I suppose that you can try anything, but unless you have something else to offer (some other unleased property to lease to the same lessee/operator that currently holds your lease, or some surface rights that were excluded from your prior lease that they might want, etc.), if your lease is currently being being maintained by production and/or continuous operations, I wouldn't hold out much hope.
No hope Herman unless you have a carrot to dangle.
There is no renegotiatiing.
Another possibility would be if the original lease didn't include all depths, but that's a long shot.
It wouldn't hurt to ask them to release your 'deep rights', I have seen it happen before.....

--EH
I agree with Ellis. You may want to look at your lease and see if the lease only covers certain depths. I have some properties where that is the case.
Hire a landowner attorney to look at your contract(s) and see what he says. No one on here is an experienced oil and gas attorney (that I'm aware of). It might cost a few hundred bucks or nothing to have them look at it.
If you are wondering about renogiating your lease, I am assuming you have not depth clause. Otherwise you would not be wondering. There is no renegotiating a lease, it is a binding contract. Check for a depth clause (or have someone check for you). Otherwise, sit back and enjoy the ride. That is at 1/6th.
This current lease is being hbp by a couple of shallow wells by a small company out of TX. Is there anyway of knowing if this small company has sold the interest to one of the larger companies. Would they have to let us know. This is on several hundred acres.
If your property is in Louisiana, post your S-T-R.
If it's a couple of hundred acres, find a GOOD O&G attorney. He'll probably be able to tell you pretty quickly that you're screwed, but the expense is pretty small vs. the possible gain. Who knows, there might be some sort of limitations or defects in the lease.

How old is the lease?
herman, i tend to agree with the others. i dont believe there is any chance to revise the existing contract. did you sign the lease or did you inherit it... let me rattle the land man cage.... could the DECEPTIVE TRADE ACT be applied here? for example, if you inherited the lease, could it be that the person who did sign was in a state of reduced mental capicities due to natural decline? (old age)
i know there are no land men on this site, that would take advantage of the elderly... i think. lol
kj

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