landowner

Sould I notify gas co. that lease is about to expire?

I have 80 acres in a section that is currently under lease until March  2012 with one co. The gas co. drilling the well is different fronm the one I leased with. They built a pad and are going to drill the first of the year (2012). I think I should  keep quite then either go UMI or renegotiate the lease if my co. doesn't extend the lease... any thoughts??

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Oil & Gas ProPermalink Reply by The_Baron on September 13, 2011 at 6:50

I am confused, is CHK drilling or not...

 

Is this your land in Sec 1 16N 10W? if so you have a well permitted


landownerPermalink Reply by Jed Clampett Bn2 on September 13, 2011 at 7:02
Yes, in or about January, 2012.....my initial lease is up with Hk  March  19, 2012. No wells in that section. Yes, I know that there is a well permitted and CHK told me that they would be drilling early 2012. Thanks

Oil & Gas ProPermalink Reply by The_Baron on September 13, 2011 at 7:23

Then whats this topic about?

 

Sounds like they will drill soon and then you will be HBP.

 

Case Closed.


landownerPermalink Reply by Jed Clampett Bn2 on September 13, 2011 at 7:37

The topic is what it says....

 

If lease is out BEFORE well is drilled, then would it make since not to lease and go into it unleased?? Just wondering if anyone had any experence with that other than speculation. I already have some good wells producing in other areas so I though I might do this different if opportunity presents itself.....

 

That's all......


landownerPermalink Reply by Joe Aldridge on September 13, 2011 at 8:19
The way I see it: I don't think the opportunity you are looking for will present its self.
Permalink Reply by benny on September 15, 2011 at 4:15

They will either extend you or let the lease go and not drill. Those are the 2 "Real World" options in this scenario. They aren't going to let a lease with a 2 year option expire and then drill on you as an UMO.

 

Not gonna happen.

Permalink Reply by Louisa Monk on September 15, 2011 at 4:38

Your lease contained provisions allowing assignment to  others in all or part. Additionally, the drilling contractor isnt usually the company you leased to;  they contract out.  If they are drilling within the term of the lease, that will serve to extend the lease.  If production is found, ie, gas, they are usually allowed to pay "shutin" royalties until the gas is bought online and sold.  Also unit provisions may extend the lease.  If the property has any merit the company(ies) will definitely maintain the lease. Otherwise they are obligated to release the lease of record in that parish courthouse....not usually a timely procedure although legislation provides for release periods; administrations are overloaded I would imagine.

Have you contacted the landman who leased your property? He should be able to "shed light" on your concerns.

 

Have faith!!


Oil & Gas ProPermalink Reply by The_Baron on September 16, 2011 at 3:29

Unless the lease states that a release will be filed, there is not requirment that it be done.... UNLESS a formal request is made by the mineral owner.

 

There are thousands upon thousands of leases filed that are expired that have never had a release filed.


landownerPermalink Reply by Joe Aldridge on September 16, 2011 at 8:03

Baron,

I agree. At the term of my leases I always ask for a release and that it be filed with the Clerk of Court. I feel it is important to have that release on file so that anyone looking at lease acreage knows that I am no longer under lease. I "think" that after you ask for a release they have 60 or 90 days to provide it. I haven't seen that in writing but if I remember  right  that is what I was told a long time ago. Thanks for your input.

Permalink Reply by Louisa Monk on September 16, 2011 at 11:40

many states have statutes requiring releases by filed by the lessee within certain periods...apparently not in Louisiana.  Additionally, those requirements arent met or enforced, unless a major company has policies in place.

 

I always request Releases through the applicable Land Department, in writing, certified mail. With a copy of the Release sent to me.  Works.


landownerPermalink Reply by Joe Deerhunter on September 16, 2011 at 16:11
I came in late on this thread.  I have some interests over in columbia Co ark.  that are under lease to Border until December, with option to renew  for $300/a & 1/5.  A Triad land man has made the usual low initial offer($250/a), but we have leased other property to Triad for $300/a and I think they'd honor that price, so at the moment neither is more attractive than the other.  This all borders the Atlanta field.  SWN is apparently working on a well in that area.  My question is:  is there potential to negotiate a higher bonus/royalty out of either of these companies or another one?  Should I contact either the present company, or Triad, as soon as the first lease term is up?
Permalink Reply by Louisa Monk on September 17, 2011 at 2:57
Try...also consider a "favored nations" clause in a new lease....states lessee must pay you as much as anyone else they lease in the area....Louisiana courts just upheld this clause ...Is Triad a landman brokerage firm? who leases and then assigns to oil/gas company or is working on their behalf?  Work on getting that release on record as soon as the lease expires...outcome on the drilling of the well could influence price or re-lease...good luck!

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