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.
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.
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.
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 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.
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