parents located in atascosa county about 200 acres signed a lease with eog with option to release is fixing to expire in 3 month. anybody in the same boat, located between pleasanton and floresville in black hill. they took the first 3 year payment and now its time to release. marathon has drilled on both sides with in 500 yards or so of both property sides. any ideas what to do?
Gary, Chances are they will exercise their option. If not you are free to lease to someone else, Marthon perhaps?
If you are anxious to find out call the Landman you leased with or EOG land dept. and ask what their plans are.
A lot of option to lease clauses include language that allow the company to send the payment up to 90 days after expiration of the primary term, so you may be 6 months away from being clear of the lease. EOG will probably exercise the option.
so they will let you know what they are deciding to do before the lease is up, but may not give the straight answer I’m assuming, and is it worth getting lawyer to review the contract before renewing again. Will they go up per acre on the next lease. My dad is wanting to keep the minerals but also wanting more per acre I guess you would say. And if they do decide to terminate do I release to others that are willing to do something.
you might want to read this blog post that I wrote over a year ago.
http://www.mineralrightsforum.com/profiles/blogs/3-year-plus-2-year...
so how or what determines if you are in a pool? and if your signed with another leaser can you be in a pool from another company.