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Oil & Gas Pro Comment by Ben Elmore on July 12, 2011 at 2:59

The option to extend leases is typically the sole right of the Lessee.  It is an option you, as lessor, offered to the Lessee when you signed the lease.  You cannot rescind that offer.  It is up to the Lessee whether or not to exercise that option and accept your offer to extend the lease by sending you the bonus check.  As to your second question, need more info.  When you say "previous owner", did you buy out the previous owner's mineral interest, and was your purchase made subject to the outstanding lease?  If so, do you have the lease, and is their production on it?  Or do you and the previous owner each own undivided 50% mineral interests? 

Comment by DL Smith on July 12, 2011 at 1:25

I have 50% minerals on my property. Eagle leased the other 50% from the previous owner but never contacted me. Is this a tactic to keep from paying leases?

Comment by DL Smith on July 12, 2011 at 1:23

How do you not extend agreements if all you have to do is accept a registered letter? How are you supposed to know what is in the letter?

 

landowner Comment by Spring Branch,mineral owner on July 12, 2011 at 0:52

Norwood, I assume the check was sent by certified mail, return receipt requested. If so, and you or someone in your family signed for it , you are extended for two years whether you cash it or not. Eagle has fulfilled their end of the agreement.

landowner Comment by JWC on July 12, 2011 at 0:39

What survey are you in Norwood?

landowner Comment by Norwood, W on July 11, 2011 at 16:48

Question -

Our family's 3 year lease with Eagle Oil is about done in a few days but a check came in the mail to extend the lease. The clause is below. Does the clause mean that if the check is cashed, the lease is extended or if we don't cash it, they are released? Someone shed some light.

 

Thanks

 

 

"On or before the expiration of the primary term of this Lease, Lessee may pay to Lessor the cash sum of $XXX.00 per net mineral acre covered by this Lease whereupon the primary term shall be extended for an additional 2  (two) years.  The payment of such cash sum by Lessee shall obviate the need for payment of an additional delay rental.  The right of Lessee to extend this Lease as provided herein is at the option, but not the obligation, of Lessee."

    

Comment by jffree1 on June 29, 2011 at 11:09

If you signed a lease you don't have to wait for the well to pay out before receiving royalties.  Once they put you into pay status, you will be paid back to the first month of production.  Then you will get a monthly check that will probably come about 60 days behind the month of actual production.

Comment by Joe Ed Jones on June 29, 2011 at 6:12

How long does it take to pay for a well before the royalty to lease holder go  out , just wondering.

 

Comment by jffree1 on June 29, 2011 at 5:48

SM Energy has reported two wells this week:

Hudson #1H came in at 12.859 MMcfd on a 20/64 choke with a 8969# flowing pressure.

Cortes #1H reported 10.815 MMcfd on a 20/64 choke with a 8667# flowing pressure.

These wells are East of the airport with surface locations in E. Quirk, A-35 just north of Hwy 21W.  We should hear about your well soon AL.

Comment by jffree1 on June 28, 2011 at 5:17

Not yet.  They are drilling the A19 and A20 units right now.

 

Pumping crew on the Teal Unit today.

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