Any idea why a major oil company would request a lease extension “because land owner does not want them on the land during hunting season” yet show well completion on rrc records well prior to date of request? Was this simply to preserve timing for continuous development?
William:
Is the extension request for the spacing unit where the well is contained? Normally, the lease would be HBP is a well is being drilled. If the request is for another lease, the company might be interested in additional wells not covered by the HBP acreage on the current well. If an extension is being requested, I would allow the lease to expire and negotiate from there for some higher terms. If they have a good well being completed, you are in a very good position for negotiations but again, let the existing lease expire.
Douglas, The extension request was probably to protect the company, because of a continuous development obligation and/or a Pugh clause. If your mineral interest is an undivided interest in a large area, the landowner's desire to prohibit access is not a force majeure action, hence the request for the extension. Patience, and not signing anything can be quite rewarding. Best. David Myrick, Jr.