# Lease Expiration

**URL:** https://www.mineralrightsforum.com/t/lease-expiration/4814
**Category:** Cana Woodford Shale (AKA Anadarko Woodford)
**Created:** [July 14, 2016, 4:25pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814 "2016-07-14T16:25:20Z")
**Posts on this page:** 9
**Page:** 1

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### Author: ![Bill\_Barnett](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/b/3e96dc/32.png) [@Bill\_Barnett](https://www.mineralrightsforum.com/u/Bill_Barnett)
#### Post date: [July 14, 2016, 4:25pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/1 "2016-07-14T16:25:20Z")

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I need advice on when a lease actually terminates. I signed a 3-year lease with language “and as long thereafter as oil or gas, or either of them, is produced from said land by the Lessee.”

What constitutes production? The lease is dated October 9, 2014, and so far, no well has been drilled.

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### Author: ![Darla\_Charlow\_Ragland](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/darla_charlow_ragland/32/3453_2.png) [@Darla\_Charlow\_Ragland](https://www.mineralrightsforum.com/u/Darla_Charlow_Ragland)
#### Post date: [July 14, 2016, 5:21pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/2 "2016-07-14T17:21:35Z")

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Bill, It would be 3 years from the date at the top of the lease. As long as there is no effort to drill a well by October 9, 2017 (assuming this is the date at the top of the lease) then you can lease again. If someone contacts you around the time it expires I would check to make sure no one filed a permit to drill before signing a new lease.

I would make sure there is not a 2-year extension on it. If it has a two-year extension you should be contacted by the holder of the lease prior to the end of the original 3-year term to pay you for an extension or it is invalid.

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### Author: ![Bill\_Barnett](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/b/3e96dc/32.png) [@Bill\_Barnett](https://www.mineralrightsforum.com/u/Bill_Barnett)
#### Post date: [July 14, 2016, 5:40pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/3 "2016-07-14T17:40:51Z")

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Thanks Darla, is it necessary to file some sort of notice once the lease has expired? I guess I’m asking what is the common practice.

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### Author: ![Darla\_Charlow\_Ragland](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/darla_charlow_ragland/32/3453_2.png) [@Darla\_Charlow\_Ragland](https://www.mineralrightsforum.com/u/Darla_Charlow_Ragland)
#### Post date: [July 14, 2016, 6:11pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/4 "2016-07-14T18:11:44Z")

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In Grady County I very seldom see a notice recorded. In some of the counties in Northern Oklahoma they almost always do. Chances are if anyone is looking to drill there they know how to check to make sure nothing has been drilled and how to tell it has expired, but if it makes you sleep better you can, but it won’t get you leased again any faster.

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### Author: ![David11](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/d/8e8cbc/32.png) [@David11](https://www.mineralrightsforum.com/u/David11)
#### Post date: [September 15, 2017, 8:08pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/5 "2017-09-15T20:08:33Z")

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Darla, I was looking at your reply to Bill. I have a question. I have a lease with a 2-year extension in McClain County, Oklahoma. The extension will be up in November. But I never received a notice after the end of the primary term. Does that mean that I can lease this property again in November because they did not notify me even though it is in the lease offer? The property also has a vertical on it and it paid me like $67 last year. Is that enough money to be HBP? Any help would be appreciated.

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### Author: ![Rock\_Man](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/r/3ab097/32.png) [@Rock\_Man](https://www.mineralrightsforum.com/u/Rock_Man)
#### Post date: [September 15, 2017, 8:43pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/6 "2017-09-15T20:43:59Z")

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Odds are the lease is HBP. The $67 you received is only for your share (as per your acreage as part of the total unit) of the royalty interest.

So gross up this $67 to a higher number (e.g., assuming that your acreage is 10% of the total unit, total royalty would be 10 times the $67 or $670).

Then assuming that the royalty is 25%, then one can assume that the operator made about $2000 for the year.

This is just an example of the calculation so that you can figure this out knowing your percentage of the production unit.

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### Author: ![Darla\_Charlow\_Ragland](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/darla_charlow_ragland/32/3453_2.png) [@Darla\_Charlow\_Ragland](https://www.mineralrightsforum.com/u/Darla_Charlow_Ragland)
#### Post date: [September 16, 2017, 9:22pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/7 "2017-09-16T21:22:35Z")

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David, Without looking at the lease and checking production I can’t say for sure, but from what you’re saying… If they drilled this well producing vertical well in the first three years of the lease and there is no Pugh clause in your lease it can be holding all of the acreage on your lease with its production. Since no one has tried to lease you then this is probably what has happened. You are welcome to send me the name on the lease and Section, Township and Range and I will take a look.

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### Author: ![David27](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/david27/32/13332_2.png) [@David27](https://www.mineralrightsforum.com/u/David27)
#### Post date: [April 14, 2018, 9:48am UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/8 "2018-04-14T09:48:59Z")

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Thank you Roick Man.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 14, 2018, 11:08pm UTC](https://www.mineralrightsforum.com/t/lease-expiration/4814/9 "2018-08-14T23:08:38Z")

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