Lease Held by Production -

Oil and Gas Leasing Help
1

I just learned that Cornerstone Natural Resources did not produce/sell any oil/gas from well 25995 in December 2014. Anyone know the status of Cornerstone? Are they financially sound?

What ramifications does non-production have on expired leases that have been held by production? If there is no production, are we free to shop this lease around?

Thank you for any insight you can share.

2

Similar to many questions that have been answered often and frequently.

Contact the Operator. Share some of your concerns with them. Request a Release of Oil & Gas Lease, and make sure it is filed in the county of record, or where the lease was filed.

3

Thank you.

4

Dear Mr. Cook,

Before doing anything, read your lease carefully. Your lease likely contains a “cessation of production” provision, that typically provides that should production crease for any reason, then the operator has XX days to commence operations to reestablish production. Also, your lessee may have relief in other savings provisions of the lease form.

Buddy Cotten

5

Hello Buddy,

Where would I obtain a standard Release of Oil & Gas Lease form?

Thanks

Gracie

6

Excellent, thank you Mr. Cotten.

Buddy Cotten said:

Dear Mr. Cook,

Before doing anything, read your lease carefully. Your lease likely contains a "cessation of production" provision, that typically provides that should production crease for any reason, then the operator has XX days to commence operations to reestablish production. Also, your lessee may have relief in other savings provisions of the lease form.

Buddy Cotten
Mineral Manager
7

Dear Gracie,

A lot of forms can be found at the courthouse. Attached is an example release. Not all releases are created equal, so buyer beware.

Buddy Cotten

Gracie said:

Hello Buddy,

Where would I obtain a standard Release of Oil & Gas Lease form?

Thanks

Gracie

1419-ReleaseofLease.pdf (136 KB)
8

Thank you Buddy.