My family owns minerals on 480 acres in sections 14 and 15, 7N60W. We have a lease with Bison Oil and Gas II LLC that expires in December 2020 and they have an option to extend for $300/acre, 18% for another 3 years. Can we expect them to do that in this market? Does anyone have a suggestion on our best strategy going forward.
Thank you
Nothing you can do until you see if they extend. 480 net acres?
Thanks for getting back to me, Todd. Just wait to hear from them, or should we reach out? Yes, 480 net acres. In two blocks in two sections. There is an approved permit on one section and an application on another, though I understand that doesn’t mean much.
Those approved permits expire in December as well. So they will either drill, extend the lease, or do nothing. I assume Bison will most likely extend the lease as they are still actively doing so. If not, then your minerals will be open for a new lease. Also, if your address has changed since you signed the lease then you would want to let Bison know.
Thank you so much, jwittter16! That’s what we were hoping to hear and will help with planning.
Has anyone recently leased near 7N60W? We have 460 acres in Sections 14 and 15 and we suspect our leases will not be extended. Can someone give us advise on what we can ask for a new lease in the area? Feel free to message me. We will approach Bison first, who is in the area and has an expiring permit on this. Terre Verte has the lease with DPOC LLC as capital partner.
Thank you
Doubt you have that many net acres. Most old leases have the gross acres on them, not net. As title has been passed down through the generations, it usually fractionates unless it passes through one person in each generation. But it is possible if it stayed completely in the family.
Please state which county and state as this topic does not have the state at the top. A more western state such as Colorado?
I posted this on the Weld County, CO page, where there certainly is a 7N 60 W. And yes, my family owns 480 net acres. My greatgrandfather purchased the property in 1918 and the mineral rights have been kept in the family.
Rachel, Great question. We had a similar situation. You’re very lucky to still have the lease but this past year the oil companies abruptly put everything on hold. The price of opil is back above $50 so they’re starting back up. If the company can extend, they will. If it lapses, I’d consider getting with a reputable oil/gas attorney and renegotiate. You might get better terms and put a drill date on it or it lapses. Sooner or later they’ll drill on your property and you’re better off with short term leases until drilling.
Thanks, Michael. It looks like they are not extending.
Jwitter16: You seem to know a bit about Bison. Can you PM me? I don’t seem to be able to message you. I’m not very adept at all this. Thank you.
This topic was automatically closed after 90 days. New replies are no longer allowed.