Expiring lease

I am due to begin receiving royalty payments very close to the time my lease expires. Since that company owns the well can anyone tell me how that affects my bargaining power for a new lease?

Replies to This Discussion

Permalink Reply by True Texan on October 24, 2010 at 8:23

What I'm getting from your post is that you had a lease with a company and they drilled a well. Now you are going to get royalty payments from that well.

If this is correct then your lease will be held by production. (HBP) What that means is the lease is not going to be renewed. The lease is still in effect till they close that well. The only thing you have to look forward to now on this lease is the royalty payments for what ever they take out of the gound.

Permalink Reply by Mel M on October 24, 2010 at 9:58

That is what I was assuming but this is my first producing well. Thanks for the information!

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About 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	Links About General Info Guidelines Supporters Donate Advertise Subscriptions Contact us

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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

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