Can Chesapeake hold a lease if they have applied for a permit, but the city of Mansfield, Texas will not allow the well to be drilled?
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Permalink Reply by Skip Peel - Mineral Consultant on A standard form oil & gas lease, no matter the lessee or the operator, is effective for the primary term of the lease and ends only when that ending date is reached without a well being spud, production established or on going continuous "operations" covered under a specific clause in the lease. The City of Mansfield can nor override state regulations.
Thanks Skip. Forgot to mention the lease was signed in 2007 for a 3 year term with a 2 year extension. Chesapeake acquired the lease from Circle Energy. Every once in a while I get a letter from Chesapeake about how they filed a permit but Mansfield will not let them drill for spacing reasons.
Permalink Reply by Skip Peel - Mineral Consultant on I think you should inform CHK that their lease has expired and you want them to record a Release of Lease in the public record. Permits do not hold leases in force.
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of) nor local residents appear to have received any compensation for the minerals extracted from their land.
This area has suffered immense environmental degradation…
ContinuePosted by Char on May 29, 2025 at 14:42
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