Lease Renegotiation:

We have an old lease that is hbp at 1/6th and we are in the heart of HS. We have been told by several people that we need to go back and renegotiate our existing lease. Is this ever done and how would we go about doing this.

Tags: Lease, Renegotiation

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Permalink Reply by Dion Warr, CPL on October 29, 2009 at 6:05
Herman:

I suppose that you can try anything, but unless you have something else to offer (some other unleased property to lease to the same lessee/operator that currently holds your lease, or some surface rights that were excluded from your prior lease that they might want, etc.), if your lease is currently being being maintained by production and/or continuous operations, I wouldn't hold out much hope.
Permalink Reply by Jon Williamson on October 29, 2009 at 8:00
No hope Herman unless you have a carrot to dangle.
Permalink Reply by Checkmateking on October 29, 2009 at 8:15
There is no renegotiatiing.
Permalink Reply by Mac Davis on October 29, 2009 at 8:19
Another possibility would be if the original lease didn't include all depths, but that's a long shot.
Permalink Reply by ELLIS HUGH on October 29, 2009 at 10:56
It wouldn't hurt to ask them to release your 'deep rights', I have seen it happen before.....

--EH
Permalink Reply by David on October 29, 2009 at 11:42
I agree with Ellis. You may want to look at your lease and see if the lease only covers certain depths. I have some properties where that is the case.
Permalink Reply by Bacon on October 29, 2009 at 12:33
Hire a landowner attorney to look at your contract(s) and see what he says. No one on here is an experienced oil and gas attorney (that I'm aware of). It might cost a few hundred bucks or nothing to have them look at it.
Permalink Reply by BirdDawg, plain ole' idiot on October 29, 2009 at 14:04
If you are wondering about renogiating your lease, I am assuming you have not depth clause. Otherwise you would not be wondering. There is no renegotiating a lease, it is a binding contract. Check for a depth clause (or have someone check for you). Otherwise, sit back and enjoy the ride. That is at 1/6th.
Permalink Reply by herman on October 29, 2009 at 16:35
This current lease is being hbp by a couple of shallow wells by a small company out of TX. Is there anyway of knowing if this small company has sold the interest to one of the larger companies. Would they have to let us know. This is on several hundred acres.
Permalink Reply by ELLIS HUGH on October 30, 2009 at 2:54
If your property is in Louisiana, post your S-T-R.
Permalink Reply by Mac Davis on October 30, 2009 at 5:54
If it's a couple of hundred acres, find a GOOD O&G attorney. He'll probably be able to tell you pretty quickly that you're screwed, but the expense is pretty small vs. the possible gain. Who knows, there might be some sort of limitations or defects in the lease.

How old is the lease?
Permalink Reply by king john on October 30, 2009 at 6:43
herman, i tend to agree with the others. i dont believe there is any chance to revise the existing contract. did you sign the lease or did you inherit it... let me rattle the land man cage.... could the DECEPTIVE TRADE ACT be applied here? for example, if you inherited the lease, could it be that the person who did sign was in a state of reduced mental capicities due to natural decline? (old age)
i know there are no land men on this site, that would take advantage of the elderly... i think. lol
kj

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