Opinions - the 2-year option to extend a lease

Depends on what you own and state law. Do you own 100% of minerals or only a fraction of minerals? In Texas, if you only own a fraction of minerals and the other co-owners are leased, then you can be carried in well and only come in at well pay-out. If you own 100% then there are restrictions which vary by whether horizontal or vertical well. In OK and NM your minerals can be force-pooled and paid in accordance with state law. Others will know if you can be force-pooled even with 100%. Other states have their own rules. No one rule applies everywhere.

1 Like