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Permalink Reply by Duncan McGehee on August 25, 2008 at 3:22

Jason,

You have to write a demand letter to the Company owning the lease. In the letter you demand the Company either release or develop your acreage or legal action will follow.

For the most part, my experience with this (very little) is the Company will ignore you in hopes you go away. It would be better if all - whose land is being held - sign the same or separate letters.

Because of the Haynesville Shale, the Company may try and drill a well to that depth if they have the money. They may do a Partial Assignment of your Section to a larger Company.

In either of the two above options, no bonus money will be paid the landowner. If this goes to court; and this may be the only way to get your acreage developed, the Court may order a Partial Release of your Section if the Company does not choose to develop the property.

Precedent should be on your side and with the current Energy concerns, I would think the Courts would be favorable to development or release. It will probably take some time to do this, but I have seen it done before and with a favorable outcome, but in law nothing is guaranteed until the judge makes a ruling.

Hope this helps.

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