Ms. McBrayer,
It sounds like the extension option was included in the original lease agreement that you signed back in 2015. Extension options usually give the oil company sole discretion as to whether or not they want to pay for an extension of the lease at the original rate per acre. Therefore, if the company complied with the requirements of the lease and sent you the extension payment in a timely manner, you don’t have much choice other than to go along with the extension.
The good news is that the extension indicates interest in the potential of your property and there is a good deal of activity taking place around your property in southwest Dawson County. If your property gets developed, the royalties could become much more valuable than the lease payments.
Best of luck,
Patrick Patrick J. Flueckiger Attorney for Texas Land and Mineral Owners
This post is for informational purposes only.