Do I have rights if the gas company begins drilling after my lease expires?

Oil and Gas Leasing Help
1

I recently signed an extension to my mineral rights lease with XTO on an acre of land in Southlake, however the company has not made the extension payment and the landman I signed with is not returning my phone calls or emails. Last night Southlake approved drilling on the area which includes my land. My original contract expired January 28, 2011.

I am wondering what my rights are if XTO doesn't fullfill the extension. I believe they intend on drilling to start by April 1, 2011. I am one of about 7 homeowners in my area who's lease expired January 28th. The other leases are still valid until June 2011.

Also, the extension says that XTO has the right (not oblibation) to extend the contract by making the extension payment prior to January 28.

2

Rick:

Did XTO conduct any activity prior to this expiration date that would null and void that expiration date. Look at your lease and see if it stipulates what constitutes the drilling process. Possibly, if they did work other than just staking the well, then this activity would be considered the "drilling process". If no activity was conducted, I think you may have a case.

3

Mr. Mallory,

XTO applied for drilling permits this past summer, however the town of Southlake did not give approval until last night. The only work XTO has done was to apply for the permits with the town. The lease states that they must have started work inorder to maintain the original lease. XTO requested the extension in early January because they had not started work. I'm concerned that since they have not made the extension payment my lease might now be invalid and my acre is located inside the drilling area.

4

Rick:

Sounds like you can you will have to negotiate a new lease with XTO.

Rick Koch said:

Mr. Mallory,

XTO applied for drilling permits this past summer, however the town of Southlake did not give approval until last night. The only work XTO has done was to apply for the permits with the town. The lease states that they must have started work inorder to maintain the original lease. XTO requested the extension in early January because they had not started work. I'm concerned that since they have not made the extension payment my lease might now be invalid and my acre is located inside the drilling area.