Lease extension terms - should they be better

Texas Mineral Rights Leon County, TX
1

Back in February 2021, my family and I leased some acreage (minerals) to Surprise Valley Resources. The properties involved were obviously later farmed out to Comstock. That lease expired on February 5, 2026. We recently received a letter from a land agent, claiming to represent Comstock, requesting that we extend the lease for another two years, offering the same bonus and royalty percentage as the original. My question is can we negotiate a better bonus and royalty before agreeing to extend?

PS - I couldn’t find any language in the original lease stating that the option term would be at the same price/percentage as the original

Any advice or suggestions will be greatly appreciated.

Thanks,

JN

1 Like
2

JN –

The way your question is worded, especially the offer your received from the Comstock landman, it seems that there was not an option to extend the original lease. If that, in fact, is the case, you have the alternative to negotiate new terms.

Best Regards,

Phil

3

Hi Phil,

Thanks for responding. There actually was an option. Original term was five years with a two year option. Does that make a difference? Please let me know what you think.

Thanks,

JN