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Permalink Reply by Mark384 on December 29, 2012 at 7:03

Maybe this will help until someone with a little more knowledge about the well chimes in. And believe me, someone who can help you will.

Under the Heading, you wrote "Lease about to expire." So I am a little confused about that. I'm gessing that you are trying to say that it the Lease expires in October 2013. I think that our lease was only
For two years, and being the month of Oct (2012) has already passed, you might be trying to say it has already expired.

Right around the time that our lease was about to expire, we were not contacted by the Representatives of the Oil and Gas Company. However, they did send "A Renwel of the Lease form" for us to sign and mail back in.

However, if your lease did expire in the month of October of this year, I wouldn't panic. I know of One situation where the person's lease had expired for several years but the Well had NOT yet begun producing, yet. He didn't even recieve the division order form to fill out and sign and mail in.

So I thought that he might not get paid unless he contacted the O&G Company. But, he's already recieved two checks for Royalties.
Here he was having NEVER even recieved a check when he HADN'T renewed the Lease, so how much MORE likely that you will continue to recieve payments when you are ALREADY recieving checks.

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Permalink Reply by Allison Beck on December 29, 2012 at 12:35

I am sorry I did not give enough info. Our lease runs out in Oct. 2013 and nothing has happened on the land at all. We do have a two year renewal agreement.

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Permalink Reply by JHH on December 29, 2012 at 14:39

is the option to renew open ended?  in other words... how long does encana have to renew the lease at the point of the original lease expiration...30 days... 60 days... 90 days...1 year? is there a clause in your lease requiring encana to pay $$$/acre to renew or extend the lease?    you should have a letter ready at the point of expiration... and mail it certified... requesting the release of your minerals.  sorry i don't have any information regarding activity in the area.

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Permalink Reply by Allison Beck on January 2, 2013 at 6:10

Thanks for your reply.  I looked and I could not find an end date for extension of the lease.  Yes, there is a clause

requiring Encana to pay to renew.  So you are saying if Encana does not get in touch with us we should ask for the release of the minerals so that someone else might make an offer?

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Permalink Reply by Mark384 on December 29, 2012 at 15:26

Based on that information, the "bigger concern" seems to be the fact that "the land hasn't produced anything, yet." So I am guessing that you are.in the dark about whether or not your land is capable of producing signigicant enough amounts of oil & gas to merit the costs of drilling of a well.

If not, then they're not likely to renew the option on the lease. Then again, they must have had reason to
Suspect the fact that it might be capable of producing that much oil & gas. Otherwise, they wouldn't have asked you to lease (so that they could perform testing).

This sounds like a job for one of the experts. If you attempt to research something like that, you'll probably never find out anything. But you've come to one of the best places on the Internet to find some type of answer to that question. There are a lot of experts who work in the Oil & Gas Industery who are members of this website who might can help you. However, to get the answer to a question like that, you might need some expert who is familiar with or works in that area.

You might want to try this. There is a person named Dion Warr who offered to help me. Actually,he is in some way envolved with my well. But he told me that if he couldnt answer a question, he could direct me to someone who could.

Here is what to do. Go to the top of the Menu, click on it and select Activity. That leads you to the list of All of the Comments made. The Comment Dion Warr made to me is a very recent one if you hurry up and
Do it now. Find Dion Warr's name, click on it. That takes you to where he is on this website. At the top of the menu of his webpage, there is a people Icon that represents "Become friends with Dion." You have to click on it to ask a comment. When you do, the text box drops down, allowing you to write a comment. Simply write, "Dion, do you know of any expert that can help me with this problem."

If he gives you a name, then you'll probably have to so the same thing at the experts website (maybe he will give you a link to it). But it is wortit it to find out an answer like that.

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Permalink Reply by Hopeful About Natural Gas on December 29, 2012 at 16:07

You could also contact Skip Peel here at GHS. He's a long time member and well respected by just about everyone around here.

Also, this is a holiday weekend and many folks will be off the site until after the 1st (but just add on to this post and it will bring it back to the top instead of starting a new post)

Happy New Year to You and Yours!!

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Permalink Reply by P.G. on December 31, 2012 at 14:49

My extension expires in April...got my fingers crossed.....

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Permalink Reply by Bobi Carr ("parker") on January 4, 2013 at 16:03

Allison,

I doubt that you will hear anything from Encana until closer to October.  They have no vested interest to do anything before then.  It seems like the Oil and Gas industry is a new game every other week.  Things change quickly for them, both good and bad.  What could be gold today might be mediocre by next month's standards, IMHO. By the time it gets close to October, the whole world could be a different place.  

More than likely your contract calls for Encana to receive a renewal of the lease by submitting the agreed upon price to you on, or before the renewal date.  If that is the case, there isn't much that you can do before then, other than, watch and wait.

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Permalink Reply by Bobi Carr ("parker") on January 4, 2013 at 16:05

Good luck.  

I've been watching and waiting for over 5 years and no well yet.

I visited with a friend today who has leased his property a bunch of times over the past 25 years and still doesn't have a well.  He has many close to his property but none that affect his minerals.

My best advice is do your homework but don't look at your minerals as anything other than Lagniappe.

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Permalink Reply by Two Dogs, Pirate on January 4, 2013 at 16:33

Parker, you gonna get your well but we got to wait. Who would have thought way back when on the river when I frist met you face to face, that they ( the operators) would'nt be drilling on you by now.

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Permalink Reply by Bobi Carr ("parker") on January 4, 2013 at 20:23

I know I've got some pretty good wells right next door to me, but I wish I had the wisdom of my friend's experience way back then.

Sometimes we want to get the "best" deal that we can and forget that we actually want a deal.  I thought what I was asking was reasonable and by everyone I talked to, it was less than what most were getting.

I learned my lesson by the second time around at my lease.  I made a good deal and then put the deal to sleep.  They will drill when they get around to it, or they'll lease me a third time, or I just ended up with some free money. None of those scenarios sound too bad to me.

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Permalink Reply by Allison Beck on January 5, 2013 at 1:32

Thanks Bobbi, I guess it is just wait and see.

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