Got some minerals from someone else who had signed a lease in 2018 in Center District, Wetzel County with EQT. Dont have the original lease, but it was a year lease and just recently received a check to extend the lease, that theoretically is expired by at least one year.
Question is: Do I have the chance to not cash the check (its small $290) and fight it out with EQT for a new lease? Not sure if its worth it or if its a conscious decision by the Operator, but curious if anyone has been in the situation where they received a renewal check for a well-expired leasehold.
Without the original lease it is hard to give you a correct answer. What and for how long is the lease or document for? I personally would not sign it unless I had the documents that you are able to read.
Its a five year lease recorded in the county office, so no confusion there. Its really just a question of if an operator can just send you a check to extend a lease even AFTER the renewal period is over or not.
It depends on the exact language in the lease. Is it possible that it was a 5-year primary term (2018 to 2023) with an option to extend at the end of the 5 years? Your acquisition of minerals is subject to the terms of the signed lease.
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Does the check stub give a clue as to what the check is for?
In addition to the possibility of an option, it might be a shut-in royalty.
You’ll probably find that if you try to fight it, EQT will say they started the permitting process for the well, so the lease was extended. However, they sent you a check for the extension, which should indicate that EQT thought they had to send you money to extend the lease, so permitting shouldn’t extend it. They won’t want to give up the lease without a fight. If it’s a few acres, and the bonus was small (per acre), and it was just their standard lease without some good clauses for you, then it’s worth the fight.