# Can terms of expired lease be "held by production" before actual production?

**URL:** https://www.mineralrightsforum.com/t/can-terms-of-expired-lease-be-held-by-production-before-actual-production/9539
**Category:** McClain County, OK
**Created:** [August 20, 2014, 8:47pm UTC](https://www.mineralrightsforum.com/t/can-terms-of-expired-lease-be-held-by-production-before-actual-production/9539 "2014-08-20T20:47:35Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![Sheppard\_Ferguson](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/76d3ee/32.png) [@Sheppard\_Ferguson](https://www.mineralrightsforum.com/u/Sheppard_Ferguson)
#### Post date: [August 20, 2014, 8:47pm UTC](https://www.mineralrightsforum.com/t/can-terms-of-expired-lease-be-held-by-production-before-actual-production/9539/1 "2014-08-20T20:47:35Z")

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I have a small share in McClain County, Section 20, Township 6N, Range 4W which is about to go into production. A well has been drilled which is being “brought online” for production.

My lease expired March 1, 2014 – I have been learning about mineral rights leasing and mulling over what to do, since then, until today when I sent out a series of emails to solicit offers. Apparently, too late, according to a response from my prior lessee.

The old 3-year lease had a royalty of 3/16 of no production and maybe a bonus of +/- $1,000.

Can the producer hold me “by production” to the old percentage in a division order or should I go after them to negotiate a new lease?

Sheppard

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### Author: ![Dean\_M](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/d/8e8cbc/32.png) [@Dean\_M](https://www.mineralrightsforum.com/u/Dean_M)
#### Post date: [August 20, 2014, 8:52pm UTC](https://www.mineralrightsforum.com/t/can-terms-of-expired-lease-be-held-by-production-before-actual-production/9539/2 "2014-08-20T20:52:53Z")

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If drilling operations were started prior to your lease expiring, then your lease is held by production. You can’t renegotiate a lease, that was done at the time you signed it and those terms will stay in place for as long as the well produces. It sounds as if you are getting a 3/16 royalty. That is a typical royalty amount. The signing bonus is only paid once, and is just for signing the lease.

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### Author: ![Sheppard\_Ferguson](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/s/76d3ee/32.png) [@Sheppard\_Ferguson](https://www.mineralrightsforum.com/u/Sheppard_Ferguson)
#### Post date: [August 20, 2014, 9:28pm UTC](https://www.mineralrightsforum.com/t/can-terms-of-expired-lease-be-held-by-production-before-actual-production/9539/3 "2014-08-20T21:28:04Z")

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Dean M,

This was a helpful response. Thanks for getting right back to me.

Sheppard

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 12:23am UTC](https://www.mineralrightsforum.com/t/can-terms-of-expired-lease-be-held-by-production-before-actual-production/9539/4 "2018-08-15T00:23:21Z")

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