Lease renewal

I am 2 years into a 3 year lease and have been contacted by the landman to renew for an additional 3 years for the same amount as 1st 3 years. Is this normal to renew a lease an entire year before expiration or should I wait until the lease expires? Activity appears to be picking up in my area. Thanks in advance for any comments.

Lease rates in Reeves have increased recently. In some areas bonus is up multiple times rates 2-3 years ago. By top leasing, you cut out opportunity for higher bonus and better lease provisions. Take your time and look at GLO sire for leases near your acreage. Those leases list bonus per acre. Leases are scanned into publicly available files.

Tennis, can you post the actual website you are referring to about for lease information above?

I would assume your lease does not have option language in it or else they would have just mailed you a check stating they were exercising their option. With him approaching you early also means that the current company who holds your lease does not intend in the near future to develop your acreage. The whole intention of leasing your land is to have a company drill and produce revenue.

In my opinion I'd hold out. The next lease you negotiate ask the landman what company they are leasing on behalf of and do they intend to assign out or drill in the near future. I'm sure if your acreage is in a good area you'll be able to get a good price. The most common bonus rate per the Lierle Report for Reeves shows $1750/ac with a high of $3,000/ac. The low is going at $35/ac in wildcat areas.

I hope this info helps.