doty, if whichever company holds your mineral rights wants to exercise the extension option you will simply get a letter with a check prior to the lease expiration date. Did you ever receive a notice letter for a drilling unit? There are a couple Goodrich wells in north Tangi that are drilled but not announced complete.
That's interesting. First, Paloma only recently registered as an "operator" with the LA Office of Conservation, they have never permitted much less drilled a well in LA. I think most observers thought they would bring in an experienced operating company as a partner if they didn't out right assign their acreage to one of the existing TMS operators. If they wished to simply exercise the extension option in your lease there would be no reason to meet with you. So it will be interesting to see what plans they have and what they want from you. It's got to be something not covered in the lease. My guess is that they want you to agree to an extension that is longer than the one covered in your lease. 4 years instead of 2, or something along those lines.
Good to know. Thanks, doty.