Our lease expired the beginning of July. We have contacted our lessor and requested that they release the lease since there is no production within our section. Is there a legal time limit to how long the company has to respond to our letter? By law, do they have 30 days or 60?Thanks.
Most leases do not require there to be production in order for lease to remain in effect. I have never seen one which did contain such language. If no drilling has commenced on your land, or any land with which it has been unitized then the lease should have lapsed based on information you gave. If drilling is in progress before lease expiration that will cause lease to remain in effect so long as there are continuous efforts to establish production.
Lorea, you are the "lessor". The company is the "lessee". If there has been no activity such as Aubrey suggests in his response above, you need to send a certified letter specifically requesting the filing of a release.
Steve--they are talking about a lease that has run 3 years and has expired. The Lessee should file a release of the lease in the county clerks record office so any one looking thru records would know these minerals are available to lease. Not all lessee do this unless you request same.
Thanks for the tip about the possibility of needing to file a release- kind of like putting up a "for sale" sign.
My leases are written so that if the lessee doesn't contact me before the expiration date they simply expire and I can release to anyone I want to. The lessee already knows that the lease has expired so I don't need to send them registered letters or anything like that,
Glad I paid a mineral attorney to handle the HK leases. It will be interesting to see what happens when they expire April/2011.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More