Does anyone know if there is a shelf life to mineral rights? I have 32 oil wells that I inherited and I had heard there was a 50 year renewal required on each of the leases. Is that true? If yes, does anyone know how that is done…is through the capitol? Still getting my arms around all this…
Thanks,
Dale
Welcome to the forum.
It depends upon your state. Some have 10 years if no production (LA), others have 20 (ND), some are forever, etc. If the wells are still producing, then the terms of the leases apply. In most states, the production keeps the lease alive.
What state are you in?
How do you terminate a lease or renegotiate?
If you are held by production under the terms of the lease, you generally cannot renegotiate. You generally cannot terminate it either. It is a standing contract. In a very few rare cases and a lot of attorney fees, you may be able to break one when the production is too low to be economic or the shut in has been extraordinarily long, but that depends upon the wording of the original lease and state statutes. Lots of us are stuck with old leases…