Will an operator who obtains drilling rights in “hot” areas tend to drill before the lease is up and new negotiations (royalty, lease term, ect.) must be made if renewal is sought.
Yes, they will try to protect the acreage and if unable to do so, negotiate a new lease on the property.
Mr. Cotton:
Thanks for your replies to my two questions. Both answers were what I predicted. These minerals which begin to expire in 2012 currently has active drilling to the West and South so I figure if drilling occures, it will be sometime in 2011 or the first part of 2012 as the lease expires in June 2012.
Buddy Cotten said:
Yes, they will try to protect the acreage and if unable to do so, negotiate a new lease on the property.
Best,
Buddy Cotten
Who knows??? In my experience over the years, hot leases have expired and I have had several successive leases with different companies with the hope drilling would follow. It really is a “crap shoot”.
Mr Mullins:
I am not really concerned at this point because if the lease expires, I will negotiate for alot more $/mineral acre; less lease period and more royalty. The current lease was approved in 2008 and things were alot different back then. I already have some companies in my files wanting to lease if possible.
Thomas Mullins said:
Who knows???? In my experience over the years, hot leases have expired and I have had several successive leases with different companies with the hope drilling would follow. It really is a "crap shoot".
I leased for five years and the section right next to me had eight wells during that time, a section two miles away had ten wells (cross sections) but no drilling occurred in my leased section. The company renewed one month before the lease expired and drilled three wells two months later. They will try to drill if they are interested before renewing, in my case they just didn’t make it in time and had to renew.
Jessica:
Thanks for the info. Hope our case is like yours since a renewal would be to our benefit dollar and term wise.
Our lease ran out in Jan. 2011. A neighbor has a pad right next to 50 of our acres. Have contacted Talisman and Chesapeake with no response. Talisman has the well pad in question. Can they drill, draw from us and pay us $0 since we are no longer leased???
Fred:
You need to read the legal description of the well in question. You should also get a copy of a map showing the leg direction for this well. If you are in the unit, they would be required to compensate you but if they are not attempting to lease you, makes me think the drill would not include your minerals.
Fred Seeley said:
Our lease ran out in Jan. 2011. A neighbor has a pad right next to 50 of our acres. Have contacted Talisman and Chesapeake with no response. Talisman has the well pad in question. Can they drill, draw from us and pay us $0 since we are no longer leased??????
Well is not yet drilled. Area cleared and pad in place. Thank you for response. Where would I find legal description and map? We are members of RLStore. but do not understand the technical end.
Fred:
Where is this area located? Be sure and give both the county and State where this is located.
Fred Seeley said:
Well is not yet drilled. Area cleared and pad in place. Thank you for response. Where would I find legal description and map? We are members of RLStore. but do not understand the technical end.
Canton Twp. Bradford Co. PA Lawyer getting maps for us.
Jessica,
If the lease is getting close to expiration, would the operators really race to beat the expiration? Unless you have a very large amount of acreage, the money they spend to lease again is comparing to a BB in a boxcar. Your lease being the BB. They will, I think, re-lease if they think they will drill during the next lease cycle to keep it where they want it.
Wes Luke
Fred:
I am not familiar with that area but it sounds like you are on the right track in regards to seeking legal advice in this matter. I would advise that you utilize an attorney who specializes in oil and gas matters.
Fred Seeley said:
Canton Twp. Bradford Co. PA Lawyer getting maps for us.
Hi Buddy,
Since I haven't been in this busuness long enough for a lease to expire, I have to ask if the lessee has to pay the bonus again if they have say, a 3+3 extension?
Thanks in advance,
Wes Luke
Wes:
I would think the answer to your question should be in the body of the lease. I have seen various terms in contracts, some good and some not so good. This is why i go over ever detail, large or small as it will be to your advantage in the future.
Wes Luke said:
Hi Buddy,
Since I haven't been in this busuness long enough for a lease to expire, I have to ask if the lessee has to pay the bonus again if they have say, a 3+3 extension?
Thanks in advance,
Wes Luke
Thanks Charles,
Sounds like sound advice to me. I was guilty of not reading one because I trusted them. BIG mistake. Have a great evening.
Wes Luke
I had a lease with Chesapeake that expired and then they started drilling 3-4 months later. Am I entitled to my full working interest. Who do you recommend I speak with attorney wise. What constitutes production. The drill bit in the ground or the pooling?
Robin:
To answer you question, "what constitutes production", refer to the wording in your lease. If Chesapeake did begin drilling after your lease expiration, I would gather all evidence (paperwork) that this did occur and contact someone for legal advice. Be sure that your paperwork or evidence supports your allegations.