Somewhere out there, I had read that there are only 2 conditions which terminate a lease if breached; 1) failure to pay "delay rentals" and 2) failure to pay "shut-in" royalties. All other areas of performance failure by a producer/lessor in a lease would have been considered breach of a "covenant" which provides settlement by damages, but, not termination of the lease. Any updates to this on case, or, current law that anyone can add to out there; this info is somewhat dated 10 yrs?

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Mom, I fully understand your frustration and venting. I am sure I have many relatives in NW La in a similar situation that could use some better upfront money. I thnk many landmen or like the used car salesmen of old that use misinformation and pressure tactics to their advantage. In many cases these landmen are contractors and tarnish the image of the industry.
Shelby, payment of "shut-in" royalties has limited applicability for retaining leases. First, a succesful well has to be drilled in the unit. Second, there has to be some justification for not producing the well such as waiting on a pipeline or permit or lack of market. Third, normally the lease agreement limits the length of time for shut-in royalty payments (for example - five years).
Thanks Les B. I will continue to gather information, and hope to retain it. I am sure it will take some time, and alot of research to even identify the next steps to take on a long journey.


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