We have a very small interest in Blk 50, Section 34 Reeves County that we acquired thru an inheritance. It is currently leased. 2 wells have been drilled & are producing but GLO had required 4 by end of 2021. Oil company wants to extend our current lease thru 2023 (orig exp date Mar 2022) to allow time to possibly drill the other 2. Is this a normal thing? The amount to extend is exceedingly small compared to the original lease bonus payment. Thanks for any info.
If your tract is ‘mineral classified’ and leased as agent of the soil using the Relinquishment Act Lease form by the General Land Office, then the GLO will make the decision. If you own the minerals and are under your own lease form, then you may be able to use this to negotiate some improved lease terms.