RE: What happens after leasing

I have a question, we signed a lease and now they are producing oil. What will happen when the lease is up? Do we get another lease or we just continue to get payments.

Thank you

Diane Johnson

The lease will continue in force as long as it produces.

If you'll check the wording in your lease, it will say something to the effect "3(or 5) years or as long as oil and/or gas is produced........"


You will recieve royalty payments as long as the well is producing and oil is being sold. Sometimes, there are months where the well is shut-in. As Ann mentioned, check the wording in your lease as this should answer the question about when the lease would expire. Also, if your lease has a pugh clause, then you would be able to negotiate a new lease (for a different zone) while the other well is still producing.

Great thank you guys.