We have mineral acres in a section or sections which has been spaced. The leases begin to expire in June 2012 while some expire in 2014 on the same section(s). What occurs when the first lease expires?
Dear Mr. Mallory,
When the first lease expires, the lands covered under that lease are no longer burdened by a lease. At that time the lessee should furnish a release of the oil and gas lease and the acreage covered by the lease.
Each lease stands on its own. Sometimes different drilling companies have multiple leases on adjacent tracts, same owners. Each lease is its own entity. Don’t expect adjacent owners to pool their negotiating together. Human nature and greed stops such cooperation among different mineral owners on the same tracts.
Mr Mullins:
Thanks for the info. I was concerned about this expiration date as we are talking about 200 mineral acres in an area with activity just to the West and South. I am sure we should see some activity before the lease expires if these wells prove good producers.
Thomas Mullins said:
Each lease stands on its own. Sometimes different drilling companies have multiple leases on adjacent tracts, same owners. Each lease is its own entity. Don't expect adjacent owners to pool their negotiating together. Human nature and greed stops such cooperation among different mineral owners on the same tracts.