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.

Tags: Lease, Limit, Release, Request, Time, on, to

Views: 440

Reply to This

Replies to This Discussion

true, but the fact remains that even without a release, the lease is expired. As Skip points out, it just makes running title that much easier.

Also, some mortgage companies and title insurance companies feel more comfortable whena release is on record.
From what I've been reading, do I need to take my lease to a lawyer and make sure there are no 'hidden' surprises like the 2 yr. extension option I found out about when they sent me another check?
What if there isn't any specific in the lease, do I still need to check with the courthouse for a release or do I actually need a formal release from the company???
Appreciate the info.
"do I need to take my lease to a lawyer and make sure there are no 'hidden' surprises like the 2 yr. extension option I found out about when they sent me another check?"

Was it hidden, or did you just not read your lease prior to signing?
If there is a 2 year extension clause in a lease, it shouldn't be a surprise and is certainly would not be "hidden". If there is no language requiring a lessee to file a release contained within the lease agreement, the lessee is still obligated to do so. And it is a good idea to send a certified letter to make sure that legal notice is given and that the lessor has the release on their radar. No you do not need a formal release from the company to prove your lease has terminated. It just makes the fact easier to find in the public record. Any diligent landman should be able to look at your lease and determine that the term has expired. Then they have to research the location for any production that might have occurred during the lease term to see if your minerals are Held By Production. A release filed of public record obviously short cuts those steps.
Without any language, the lessee is only obligated to file a release at the lessors request, or if the lease is release in the primary term.
Thank you very much Baron. I knew I could count on the shalers at GHS to explain this to me.
It would be a good idea to be sure there's a release and that it's filed at the courthouse. This should help prevent finding out later that the lessee is claiming that there was something you didn't know about that means they think they still have a lease. Even if the lessee tells you there's a release, a certified copy from the courthouse would be a good thing to have in your hand.
I was planning on filing the release at the courthouse myself, as soon as I get a copy from the leasing company. Thanks for the advice.
I would think they have to file it themselves.
no, as long as it is properly executed anyone can file it.
I finally have an update. We have received our copy of the release from Questar and our attorney has already filed it with the Clerk of Court in Arcadia. It took about 3 weeks from the time the attorney mailed the certified letter to filing the release with the Clerk of Court. It took the lawyer until last week to remail us our copy, since we did not receive the first copy.
It's a shame that this took a lawyer to make it happen...


© 2020   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service