We leased our tract in Reeves County on August 24, 2006 (five year lease). The lease has 'passed' from the original lessee to a second, and now to a third. No activity at all other than delay payments which have been timely made.
I assume that this lease, absent any meaningful activity, will expire at midnight on August 23, 2011 (the lease document is silent on this point). Is this correct? (this is my first question).
We received a letter - this week - from the third operating company citing this lease and stating that "we will soon be drilling on this property".
My second question: What has to happen regarding notification or activity in order to move the lease into a 'continuing operation' phase where it does NOT expire on August 23 of this year? Is the letter we received sufficient? Or if a truck is parked on the property sufficient? Or does dirt have to fly? Or just what?
Any clarification would be greatly appreciated.