No bonus lease extension?

Anyone had an oil company want you to sign a no bonus lease extension?

Many have tried. The answer depends upon if this is a lease extension from a lease you already have where the terms were not spelled out or if this is a new lease with a clause that has a lease extension. If the first, then you may not have a choice. If the second, then I would never sign a lease with an extension on it in the first place.

Spot On M_Barnes!! :raised_back_of_hand: :+1::ok_hand:

“Many have tried.” By that can we assume they failed?

It means that may have asked for one, but I turned them down. In the first place, if they are going to pay a bonus the first time, then they had better pay a bonus the second time and it had better be equal to or better than the first time. In the second place, I won’t sign an extension clause anyway and strike it. (Or a top lease clause, or a post production charges, or a warranty clause or free use of my oil and gas and water…)

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Have they already drilled a well or wells under the lease? Because of current conditions, some operators are asking for extensions of time to drill additional wells under continuous development clauses in leases, which could effectively extend the lease.

Wells drilled, different depth, old lease pughed out.

I totally agree with those who would never sign any kind of lease extension!. It is not really an extension, it is an OPTION to extend. they want you to guarantee that in three years you are going to extend for a price that was determined three years earlier.You and only you are locked in to that agreement. Lets just suppose that in 3 years the lease bonuses in that area have gone sky high, then they will gladly extend your lease at the old bonus price. Lets also suppose that in 3 years the lease bonuses have gone drastically down! Then they will just walk away and you get nothing. Walk Away Jose!

I wouldn’t sign…Reeves is too hot a County.

i think more detail might be needed to answer your question, if you’re saying wells are drilled and they are still asking for an extension, then it might be a case where they need a few extra months to bring the drilled, but not completed wells, online to hold your deep rights. If the operator is asking for an extension on a drilled unit, then you must have semi-savy lease form, I would call the Operator/landman directly and ask for more info. Being carried by an operator through the flush production isn’t ideal for a mineral owners, the wells decline fairly steeply after the first year of production and you [possibly miss out there.

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