i have a primary lease which states that i am to be paid monthly a well went into
production( was hookedup to natural gas line and being sold) oct 16 2013 i have recieved no money or compensation as of the expiration
of the primary lease on jan 24 2014 in feb i recieved check which i have not cashed its not
much was the primary lease still in effect as of jan 25 2014?
please advise of the status of the lease
A lease on your acreage is in force as long as production is happening. Royalties are to be paid on all production according to the terms of the original Oil and Gas lease. Companies must report their production to the State where the well is located upon sale. You own the minerals in the drilling unit, not the exploration company, you convey working interest to them in through the lease in order for them to drill and complete a well if the geology is viable for that. The following factors apply, Rate of royalty in the lease, amount of acreage you own in the drilling unit, drilling unit size by type of formation (varies according to well and formation type) and amount of monthly production. Call the company, Texas operators are easiest of all to talk to.
Dear Mr . Dallas,
A lease is in full force and effect unless terminated by the provisions of the lease itself. Production is only but one of the several things that can extend the lease past its primary term. Without seeing all the information, nobody can make a determination as to its status.
An oil and gas lease (in OK where your property is located and in TX and other states) is a conveyance of the mineral rights to the lessee with the lessor reserving a royalty interest and having a possibility of reverter. The working interest is created by the oil and gas lease. It is not an element that you are conveying. By granting an oil and gas lease you are conveying your minerals in the nature of a determinable fee.
Best
Buddy Cotten
lease term my lease term did have the $1 an royalty acre during shut in which they did not pay either i have been told both the lease is still in effect and that the lease became broke at which tme the oil company was selling gas and oil with out paying me monthly any good mineral owner lawyer advise send email d4dusty@gmail.com
I would recommend John McFarland in Austin.