pugh clause

how does one know if the minerals to be released in a pugh clause application have been released? is that a notice to the rrc or is it a filing in the deed records? is there a typical time between well completion and pugh release? this is in reference to blk 3, section 3, h&gn survey. thx.

HI Richard - there isn’t a single way of determining it. Some Pugh clauses are created to trigger the release automatically when certain terms are met. Such as the expiration of the primary term and no continued drilling for 90 days after the last well. At that point the lands or depths that are not specifically held by the lease would be deemed to be released or just deemed as no longer leased.

Some clauses aren’t as automatic and actually require the operator to file a release in the county records. This doesn’t always mean the operator will do this but it can be used to cause them to file a release if they haven’t already. It is rare in today’s busy drilling climate that operators file releases on private lands unless they are forced too. It isn’t something that is a high priority to many operators.

I hope that helps a little.

just what i needed to know. perfect, thanks so much for clear and understandable reply to what has been confusing to me for a while. now i know what to do. regards.

Glad to help!