Contract Terminology
i signed a contract 3 years ago for a measly $100 an acre and 20% royalties. my contract is up at the first of august. they have drilled a well but have not frac or anything yet. my contract states they must be producing oil gas or hydrocarbons by the deadline. do i have a chance of the term producing meaning actually producing gas in the pipeline for payment? do i have a chance of resigning a big contract like the rest of you guys?
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Replies to This Discussion
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Permalink Reply by btj on
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I am curious if you have seen any leasing activity in Cass County recently. I own minerals there but have not leased any in several years.
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i have not seen leasing yet here but was just informed that they are moving this way rapidly. i would be very optmstic about minerals in cass county especially on the east south east side of county
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i am i tx
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Permalink Reply by KAYBABY on
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First of all, do you know whether or not your property has been pooled into a unit for this well? Or, was the well drilled on your property.? I may be able to answer you if I know.
If the well is actually on your property, you are most likely out of luck!
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yea the property has been pooled. and the well is on my place. the contract states something like must be producing in paying quantities. my neighbor who has a few acres in the same pool lease ran out the first of the month while they were still drilling and they contacted him to get him to sign a year extension. and gave him $400.
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Permalink Reply by Greedy Landowner on -
Without having further information, I think the fact that they contacted your neighbor who had leased a month ahead of you originally indicates that your lease should be expiring. How long have they been drilling?
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hey jim they are actually through drilling....the put a casing in and and vavle bank or whatever that thing is....thanks for replying jim
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There is probably a clause in the lease currently in place that states something on the order "if within 60 days of expiration of primary term................." this will let your lease be held until production actually begins. It is very common. How many acres do you own in the unit?
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i own 136 acres
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they probably did not contact you since the well is on your property and they wanted to "cover" themselves with the neighbor
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i see.....so they will probably frac and produce within 60 days? thanks kay for your help
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