Replies to This Discussion

Permalink Reply by The_Baron on August 20, 2010 at 3:01

true, but the fact remains that even without a release, the lease is expired. As Skip points out, it just makes running title that much easier.

Also, some mortgage companies and title insurance companies feel more comfortable whena release is on record.

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Permalink Reply by Charles on August 19, 2010 at 2:51

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.

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Permalink Reply by The_Baron on August 19, 2010 at 3:22

"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?"

Was it hidden, or did you just not read your lease prior to signing?

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Permalink Reply by Skip Peel - Mineral Consultant on August 19, 2010 at 3:30

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.

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Permalink Reply by The_Baron on August 19, 2010 at 5:57

Without any language, the lessee is only obligated to file a release at the lessors request, or if the lease is release in the primary term.

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Permalink Reply by Lorea Cobb on August 19, 2010 at 6:12

Thank you very much Baron. I knew I could count on the shalers at GHS to explain this to me.

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Permalink Reply by Mac Davis on August 19, 2010 at 8:12

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.

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Permalink Reply by Lorea Cobb on August 19, 2010 at 10:19

I was planning on filing the release at the courthouse myself, as soon as I get a copy from the leasing company. Thanks for the advice.

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Permalink Reply by Mac Davis on August 19, 2010 at 11:14

I would think they have to file it themselves.

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Permalink Reply by The_Baron on August 20, 2010 at 3:02

no, as long as it is properly executed anyone can file it.

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Permalink Reply by Lorea Cobb on September 27, 2010 at 6:20

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.

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Permalink Reply by Henry on September 27, 2010 at 7:56

It's a shame that this took a lawyer to make it happen...

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