"My 3 year primary term paid-up lease is up in May and there is a 2 year option to renew on the part of Great Northern Energy. There has been no activity or operations to my knowledge on my sections that are leased. I would like the lessee to extend the lease for the 2 year option. Do I wait for the Lessee to call me, or do I contact them? If I contact them, how many weeks before the end of the lease should I do it? What is customary?
If the option is not taken then I plan to contact other companies that are leasing in my area."
Judy:
I think it is really your call in regards to contacting this operator. If it were me, I would wait until the operator contacts you. If they are interested in the lease extension, you should be hearing from them soon and if the lease expires, just wait for another company to contact you. You might want to do some homework and learn who is active in your immediate area.
Charles is correct. Contacting them can be perceived as a sign of being overanxious, causing them to want to renegotiate the option price if the area has cooled off.
Good advice on waiting for the company to contact you. If the lease expires and the company does not renew the 2 year option, make a written demand for them to file a Release of the lease in the real property records in Anderson. It is good business to get this on record, even when the lease has expired. Your lease may or may not address a time frame for a release.
I sent a former Lessee a written demand for a release within 30 days and a it was done. I also requested a copy of the recorded release and the company provided me one.