# Ovintiv - Section 29, Block 31, T1N
**URL:** https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203
**Category:** Howard County, TX
**Created:** [October 6, 2020, 6:37pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203 "2020-10-06T18:37:13Z")
**Posts on this page:** 19
**Page:** 1
### Author:  [@Brandi\_J\_Waits](https://www.mineralrightsforum.com/u/Brandi_J_Waits)
#### Post date: [October 6, 2020, 6:37pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/1 "2020-10-06T18:37:13Z")
Hello Everyone, Is anyone familiar with Ovintiv? I’ve not had any dealings with them.
And, is this industry standard to ask for a two year extension without lease payment?
Lease Extension Proposal Section 29, Block 31, Township 1 North, Howard County, Texas
Ovintiv recently drilled two horizontal wells through the West half of Sections 8, 17, and 20, Block 31, Township 1 North which are scheduled to come online in early October. Ovintiv would like to see several months of flowback data on these wells before determining how to move forward with drilling wells through Sections 20 & 29, Block 31, Township 1 North. Ovintiv currently plans to commence drilling horizontal wells through Sections 20 and 29 by March 21, 2023. Accordingly, Ovintiv wishes to amend the Oil and Gas Lease to extend the primary term as well as to clarify that the retained acreage for horizontal wells includes the acreage permitted under TRRC Rule 86.
Enclosed is an Amendment and Ratification which extends the primary term of the Oil and Gas Lease and clarifies the application of TRRC Rule 86 (“Amendment”). Ovintiv proposes the following in exchange for your execution of the Amendment: if Ovintiv has not commenced drilling at least two horizontal wells through Sections 20 and 29 by March 21, 2023 (“Drilling Obligation”), Ovintiv will pay you an extension bonus of $1,500.00 per net mineral acre (“Extension Bonus”); however, if the Drilling Obligation has been met, no Extension Bonus shall be due or payable.
---
### Author:  [@C.C\_Barton](https://www.mineralrightsforum.com/u/C.C_Barton)
#### Post date: [October 7, 2020, 4:28pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/2 "2020-10-07T16:28:08Z")
I believe this means that if your acreage was drilled before the end of your primary term, then there will not be a bonus. However, if it was after term then a bonus will be applied. This may be a blanket letter sent to everyone that may have different effective dates. I would reach out to see if they can verify your particular interest/lease. Just my 2 cents.
---
### Author:  [@Cow-boy](https://www.mineralrightsforum.com/u/Cow-boy)
#### Post date: [October 7, 2020, 4:52pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/3 "2020-10-07T16:52:41Z")
They are offering you no benefit to sign this extension, so I would wait. They can pay you a bonus for a new lease when they decide they want to drill a new well.
---
### Author:  [@Brandi\_J\_Waits](https://www.mineralrightsforum.com/u/Brandi_J_Waits)
#### Post date: [October 7, 2020, 5:01pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/4 "2020-10-07T17:01:40Z")
Perfect! Thank you for your response! I’ve never seen one set up like this.
---
### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [October 7, 2020, 8:04pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/5 "2020-10-07T20:04:53Z")
Ovintiv is the new name for the Canadian firm that bought Newfield.
I would pass on the offer. I do not like two year options to extend. Too much can happen in three years and then another two years. I prefer taking the pricing at the end of the primary term. I would not personally amend the current lease unless I could get better terms.
---
### Author:  [@Brandi\_J\_Waits](https://www.mineralrightsforum.com/u/Brandi_J_Waits)
#### Post date: [October 7, 2020, 8:34pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/6 "2020-10-07T20:34:18Z")
Mary, thank you so much! I really appreciate your insights.
---
### Author:  [@Brandi\_J\_Waits](https://www.mineralrightsforum.com/u/Brandi_J_Waits)
#### Post date: [October 8, 2020, 3:37pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/7 "2020-10-08T15:37:44Z")
Thank you for your insights! I told them that I wasn’t interested in this type of extension. And now, they are asking me what it would take. Anyone have any insights into going lease rates in this area (Howard)? We signed an extension lease in 2019 (2 years) and received $500.00 per NMA.
---
### Author:  [@james\_h\_davis](https://www.mineralrightsforum.com/u/james_h_davis)
#### Post date: [October 8, 2020, 4:30pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/8 "2020-10-08T16:30:45Z")
We received $10,000 per NMA as recently as late 2019. I know prices have dipped but remember you are effectively selling 75% of your minerals with right of reverter. $500 would be an insult.
---
### Author:  [@Brandi\_J\_Waits](https://www.mineralrightsforum.com/u/Brandi_J_Waits)
#### Post date: [October 8, 2020, 4:43pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/9 "2020-10-08T16:43:34Z")
Hello James, was this for a lease or a purchase? The offer I am posting on is in regards to a lease extension and the structure of the lease. Would love to know if your offer of 10K per NMA is for a lease.
---
### Author:  [@Cow-boy](https://www.mineralrightsforum.com/u/Cow-boy)
#### Post date: [October 8, 2020, 5:11pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/10 "2020-10-08T17:11:56Z")
If they are that aggressive then you may not have a strong lease. I would recommend you contact a lawyer (like Wade Caldwell or others on the Mineral Services tab) and have them review your lease form before going forward. A lot has changed since your last lease.
---
### Author:  [@james\_h\_davis](https://www.mineralrightsforum.com/u/james_h_davis)
#### Post date: [October 8, 2020, 7:24pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/11 "2020-10-08T19:24:10Z")
Ovintiv is the new name for Encana.
The $10K NMA was on a fresh lease for 3 years. We received another lease offer recently and we couldn’t get them above $2,500 so we didn’t lease.
Of course, they want an extension because of the COVID hiccup in prices and drilling schedules. They are just trying to hold on to their block. I wouldn’t get in a hurry if I were you.
---
### Author:  [@Brandi\_J\_Waits](https://www.mineralrightsforum.com/u/Brandi_J_Waits)
#### Post date: [October 8, 2020, 9:30pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/12 "2020-10-08T21:30:01Z")
Thank you so much! I truly appreciate your insights. I’m going to hold tight and have an O&G attorney review our current leases.
---
### Author:  [@JimKlemens](https://www.mineralrightsforum.com/u/JimKlemens)
#### Post date: [October 11, 2020, 7:02am UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/13 "2020-10-11T07:02:00Z")
Why would you pay an attorney to review your current lease?
---
### Author:  [@garyr1944](https://www.mineralrightsforum.com/u/garyr1944)
#### Post date: [October 12, 2020, 2:21pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/14 "2020-10-12T14:21:57Z")
We had several leases with Newfield and they were really slow to pay when the wells started producing. Then the Encanta takeover. Not a word about the change. The next checks came much later from Ovintiv. Again not a word about the change. Communications with the Mineral Rights owners seems to be a problem! The sunshine was the checks were cashed!
---
### Author:  [@Publius](https://www.mineralrightsforum.com/u/Publius)
#### Post date: [October 12, 2020, 6:07pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/15 "2020-10-12T18:07:04Z")
To their credit, Ovintiv regularly pays on schedule within roughly a week after production data shows up on the RRC website. So no problems there. My complaint is their reluctance to resolve a title issue we thought obviated up front when we signed our lease. Our lease says they owe us for 30 acres, no matter what title issues come up. Ovintiv apparently claims we must wait until all other title issues are resolved. It may be that they figure the other lessees will get upset if we get out easy because of a specific contract item. But meanwhile, we lose significant revenues. Hey guys, a contract is a contract.
---
### Author:  [@Douglas\_D\_McLallen](https://www.mineralrightsforum.com/u/Douglas_D_McLallen)
#### Post date: [October 13, 2020, 12:40pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/16 "2020-10-13T12:40:37Z")
Trust me, the squeaky wheel gets the grease. Especially these days with Operators cutting jobs.
---
### Author:  [@james\_h\_davis](https://www.mineralrightsforum.com/u/james_h_davis)
#### Post date: [October 13, 2020, 3:09pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/17 "2020-10-13T15:09:31Z")
There is a rider you can add to your lease that requires the operator to put you in pay status within 90 days of first sales.
---
### Author:  [@Ronnie\_Maxwell](https://www.mineralrightsforum.com/u/Ronnie_Maxwell)
#### Post date: [December 29, 2020, 10:44pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/18 "2020-12-29T22:44:00Z")
Know of anything that might affect Section 25, Block 32, Township 1 North, T&P RR A-140? I bet I got skipped over again.
---
### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [January 4, 2021, 6:37pm UTC](https://www.mineralrightsforum.com/t/ovintiv-section-29-block-31-t1n/59203/19 "2021-01-04T18:37:14Z")
This topic was automatically closed after 90 days. New replies are no longer allowed.