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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landownerPermalink Reply by obed w odom on September 17, 2011 at 7:30
Good luck, Joe, but I wouldn't think you would be able to get much more than $300/acre, simply because if the going rate is much more then Border or their assignee would just exercise their option to renew. We did get $300/acre last year from Pinebelt, though, when the company that had an option to renew at $250/acre decided not to exercise their option.

landownerPermalink Reply by Joe Deerhunter on September 17, 2011 at 18:18
Thanks Louisa & Obed -  It would appear the $300 A  bonus is part of triad's application to unitize a section near there, so that will likely be standard in those parts.  Louisa, Triad has been leasing up property for SWN in that area for sometime now.  I'll have to review all my leases, but i think our lawyer may have put a "favored nation" clause in there.  Anyhow, my main question was, should i notify the existing leaseholder that their lease will expire in  or just shut up, let the first lease expire (if it does) and request a release, then talk to other companies?

landownerPermalink Reply by Joe Aldridge on September 17, 2011 at 19:40

Joe,

They know what the status of your lease is. Let it expire and go from there.

Permalink Reply by Louisa Monk on September 18, 2011 at 5:17
Agreed.  The geologists who work that "prospect" or area look at all expirations as they become due, and really make the strong recommendations.  Joe is right, they know the status of the lease. Just quietly watch.  First to make move in negotiations is the losing member.

landownerPermalink Reply by Jed Clampett Bn2 on September 21, 2011 at 14:20

Thanks too,

I think that is what I will do. My question was and is, is it worth it to be a UMO?? That is if it comes to that


landownerPermalink Reply by Joe Aldridge on September 21, 2011 at 23:52

Jed,

Yes, it is worth it to be a umo. Then you can lease to anyone.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on September 22, 2011 at 2:01

Jed, I suggest that you read the UMI Basics by Kat Bloomfield.  Link follows.  Use the link that appears in the discussion title,

Louisiana UMO Basics -- MUST READ

 

http://www.gohaynesvilleshale.com/group/unleasedmineralinterests

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