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.
Please excuse me for wrong usage of lessor & lessee. Believe it or not I really do know the difference! Thanks for correction.
I do believe it, william. Just wanted to avoid any confusion by members reading the thread. You're welcome.
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?
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?
some might. generally, you just won't receive a check.
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.
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.
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.
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.
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