Replies to This Discussion

Permalink Reply by Jon on January 6, 2014 at 16:38

Skip

Excuse my ignorance, but will these units hold the leases for depths below or above the CV?  

Permalink Reply by Skip Peel - Mineral Consultant on January 6, 2014 at 16:46

Units do not hold leases.  Only a producing well will hold a lease.  Some leases do include extension clauses.  And your lease determines what depths a lessee may retain development rights to after the primary term of the lease expires.

Permalink Reply by Jon on January 6, 2014 at 16:58

Thanks Skip,

I was assuming these units have producing wells.  So my thought was that in essence the unit would hold the lease in that way and poorly constructed leases might hold the lease for other depths. I do not know much about these matters just thinking out loud.    

Permalink Reply by Skip Peel - Mineral Consultant on January 6, 2014 at 17:10

The units were just applied for.  They haven't been approved and there are no CV wells drilled.