Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on June 27, 2013 at 14:58

The mineral owner is the lessor. The lessee has the right but not the obligation to exercise an option to extend the primary term of a lease.  And yes, many acres will reach their primary term experation dates in the 3rd. and fourth quarters.  I expect that SWN will choose to renew some and allow a lot to expire.

Permalink Reply by william mitcham on June 28, 2013 at 4:38

Please excuse me for wrong usage of lessor & lessee.  Believe it or not I really do know the difference!  Thanks for correction.

Permalink Reply by Skip Peel - Mineral Consultant on June 28, 2013 at 6:48

I do believe it, william.  Just wanted to avoid any confusion by members reading the thread.  You're welcome.

Permalink Reply by Mpk on September 23, 2014 at 6:32

How does the lessor know, and when do they know, if the lessee is going to renew or let the option expire?  Does lessee have to send out a notice or do they just let time pass?

Permalink Reply by Mpk on September 23, 2014 at 6:36

Well I thought I edited a previous reply, but it just says "Saving...".  Question is how does lessor know or get informed that lessee does not want to renew?  Do they send a formal notification?

Permalink Reply by landman on September 23, 2014 at 7:38

some might.  generally, you just won't receive a check. 

Permalink Reply by Mpk on September 23, 2014 at 7:47

Permalink Reply by Mpk on September 23, 2014 at 7:49

Seems like a simple email would be decent of them.  My wife's nephew has an internship with XTO, or did have one this last summer.  That was one of his jobs...to call people and let them know what the company would be doing with their lease option.

Permalink Reply by Skip Peel - Mineral Consultant on September 23, 2014 at 7:48

Mpk, I suggest that you ask some of the members who have had their lease extension options exercised.  I suspect they simply received a check with a cover sheet in the mail.  If you are within the footprint of the seismic shoot I'd say the the odds are 50/50 that you will be paid and extended.  Some members have reported SWN offering new leases (at lesser terms) after allowing their original lease to expire.  That does not appear to have gone over very well.

Permalink Reply by obed w odom on June 27, 2013 at 16:39

Yes, several people I know, including myself, have leases to SWN whose primary terms will expire within the next 3 months unless extended. I hope SWN wasn't listening when we were informed yesterday on GHS that there probably is no LSBD play, but I guess we will learn soon enough if SWN shares this opinion.

Permalink Reply by Skip Peel - Mineral Consultant on June 27, 2013 at 17:14

obed, when the Brown Dense proves commercial and moves from exploration to development drilling I will consider it a "Play".  Until then it is what it is - an unproven prospect.  I expect that SWN will exercise renewal options in some portion of it's original lease block.  I hope you and your family are included.  You're in what appears to be a good area.

Permalink Reply by DavidR on June 27, 2013 at 16:39

According to SWN's last 10-K, leasehold expirations for LSBD are:

2013 - 68,023 net ac

2014 - 237,181 net ac

2015 - 159,718 net ac

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