Hi; Can some one let me know,How long do I get paid on mineral rights wells after my lease is up ? Thank You Marcella
The lease will be for as long as oil and gas or other hydrocarbons are produced. So, unless the well(s) are abandoned or plugged, you will get paid until they cease to produce.
Don't expect the payments to be the same throughout the entire production of the well. Production will increase and decrease. Same with prices. Reworking can be done periodically and the well(s) will produce more for a while and then decrease as the months go by.
You might have a lease that produces for 50 years, or a few months. Just depends on how long that well produces.
I have been receiving checks on wells in Fort Bend county that have been producing since 1955. My profile picture is one of them. A few in Fayette county are barely producing anymore.
If the lease is up and it never went into production, you are free to re lease to someone else. However, I do not recommend it. If you do re lease,and it does go into production, they will sell the product on a depressed market. You will lose. It is better to wait for the market to improve. If the US government authorizes the export of raw petroleum, the price will go up. Also, if there is a war in the Middle East, the price will go up. Time is on your side. For what it is worth, hang on to all contracts. Read them carefully. It is all explained in the contract.
Good Luck