Myself and my family leased with them 3 years ago with a two year option. Well the 3 years came and went and we were never paid for the 2 year option. Two months go buy no release of lease filed of record. So I called them. They show the option was in place and my lease would expire in 2023. I explained the lease was null because they failed to pay for the 2 year option. Please file a release. FYI
Thanks for sharing what happened with Magnolia. I’ve had dealings with them in Washington County and was interested to hear about that.
If you don’t mind saying, I’m curious when you contacted them to get a release did Magnolia say they had paid you the additional bonus that the lease required for it to be extended, or did they claim they weren’t required to do that for some reason and still think they have a valid lease?
Their system showed that we had taken the option and extended for two years. That was 2 weeks ago.
Since those extension are strictly at the Lessee’s option they typically only require the Lessee to tender the bonus check prior to the expiration of the based term of the lease to become effective. If by saying “had taken the option” you’re meaning their system showed you received the additional bonus check, can they document that it cleared a bank? If not, it seems like they should stop payment on that apparently lost check and issue you another one. If you aren’t willing to accept their payment at this point and only want your title cleared of the prior lease it may take getting an attorney involved.
You might checked with other royalty owners in your area who were also leased to Magnolia to see if they received extension checks or may have the same issue.
There were four of us that they took a lease from. None of them were contacted about the extension or the bonus. At the courthouse it shows we are still leased because of the two year option. So any Oil and Gas company doing lease checks it will show we are still leased which we are not.
Where in Fayette County are you located? Is it possible that your lease is held by recent operations or production? To your knowledge has your lease been put into a unit?
We were in a Unit but they plugged it. Then took a lease again. We are on the Washington Fayette County line
If you care to share the Abstract # or name of the Unit I can do some further research. You can message me if you don’t wish to share it on the public forum.
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