We own mineral righs in s7 9N 5W Grady county. On March 28, 2016, a pooling order was approved to drill into this section from a surface hole starting in an adjacent section (S18 9N 5W). The pooling order expired in 180 days, which would be coming up soon. The associated permit to drill was issued 6/20/16, and is effective for 365 days. I assume if drilling does not occur before the pooling order expires, that another pooling order would have to be filed before drilling could begin? Is this correct. I am asking because we were not included in the original pooling order because our interest is held under an old lease that is marginally producing. We may want to pursue release from the existing lease if a new pooling order is required so we could take advantage of any lease bonus payments. OR, if pooling order is allowed to expire with no drilling, do we just assume that operator has decided not to drill? Would appreciate any feedback.
Cheryl, I think you have to consider breaking your lease in isolation since you have no control over anything else. Seeking to break the lease is either the correct thing to do or it is not.
Presumably you want to break your lease on grounds that it is not producing in paying quantities. I don't know the specifics.
I do know that the lessee will probably contest any attempt to break the lease and if you are working to a deadline, you can probably count on not making that. Which brings me back to, does it make sense to try to break your lease with no other considerations involved?