HAD SOME MINERALS LEASED AND THEY EXPIRED TODAY. HAD TO KEEP CALLING THE COMPANY JUST TO FIND OUT THEY JUST LETTING THE LEASE EXPIRE. AT THE TIME I DID NOT FIND OUT WHY THEY NOT WANT TO LEASE AGAIN. COULD ANY ONE PLEASE TELL ME REASONS THEY WOULD NOT WANT TO LEASE AGAIN....
THANKS
MARY
Mary: there are numerous reasons why an oil company would decide not to re-lease a particular piece of property. Most of the reasons include some variation of the oil company's re-evaluartion of the its projects and a decision to reallocate resouces to another area. Another reason is that they have evaluated the play and determined that this area does not have the mineral deposits that they had originally thought or hoped.
It is disappointing when a lease is not renewed. You're not limited to this oil company, however. Shop your minerals to others. There are websites. That can help with this.
I hope this helps.
Jean M. Pledger
Thank you so much for the response. It just made me wonder why. One company had leased it in 07 after years and years of not even knowing I had them. I will just see what will happen .thanks again.
In addition to above, gas prices are worse than awful. Oil prices have dropped 20% to 25%. So, product prices can be a big factor.
Also, sometimes speculators lease minerals in hopes of "flipping" the lease i.e. trying to make a profit by selling the lease to another party.
Sounds like you had leased for 5 years. I will not lease for over 3 years.
Let's hope your next lease is an even better deal for you.
My thoughts on the issue, given the terrible price for natural gas at this time, it may be more to your advantage to just leave that stuff down there until the market picks up. If it is developed, it would be part of your estate and subject to inheritance taxes. As it is now, it is an unknown quantity.
That is my thinking on the issue.
Robert V. Gill
Thanks Robert and Ann for your responses also. I guess I will just wait and see if I am approached by any other companies. It just seemed odd to me that for so many years we didn’t even know we had the mineral rights then got a lease. Now they don’t want to lease again. I know most of this is just a waiting game. I know to with the gas prices so low. Yes Ann it was a 3 year lease with 2 year extension. Thanks again Mary
Thanks Mike. And yes you are correct. Mine are located in Polk co. Thanks for remembering. Yes I guess when the gas prices go up I may get the minerals leased again. Please keep me informed. Thanks again Mike.
Mary
Thanks Mike. I know I have been trying to learn all I can. My uncle handled it all before but since then things have changed family wise. I appreciate all info u can pass along. You can just send email too. My personal email is cashmarilu@Yahoo.com. thanks again Mary
Letting the most informed and capable family member handle the family mineral estate is a great plan until that person dies. Always make sure others are aware of what is happening and always maintain the proper paperwork.
Robert Gill
Yes Robert I agree. But my uncle that handled it before we no longer speak anyways. I am learning all I can from others that have leases and have been through all this. I am learning on my own through sites like this one and others. And do appreciate any help from people like yourself. Thanks so much any help you can pass along. These minerals are mine that my dad/ mom left to me.
Mary
Be sure to obtain a release of lease.
Vernon… and that would be what? I’m new to all this need all info I can get. Thanks
I am fairly new to this as well but basically you need to get the lessee to file a "Release of Lease" so that other companies will know that your lease is available and not HBP. You can use the above search box and type in "release of lease" to view other discussions on this subject. Here is one that I found:
I agree that this might be a good time to become better educated and be more prepared when the next landman comes knocking. My lease is scheduled to expire early next year and I am trying to learn everything that I can in case they do not drill before then. Good Luck.
Thanks for the info… I will call and make sure they had done the release on my minerals.
Thanks Vernon. I called and they haven’t done the release yet. Now they know to do it. I appreciated your help… Mary
Be sure it is filed with the county clerk's office.
mary said:
Thanks Vernon. I called and they haven't done the release yet. Now they know to do it. I appreciated your help....
Mary
How long does it take for them to do that? When should I check to see if they filed it? Thanks so much …
I am not sure. It would probably be best if they sent the release to you and then you could file it yourself.
Ok I will check into that.
DEFINITELY stay after them to get a Release of Lease, and make sure it's filed in the county court house where the lease was. It took me a year to get a release, but now others who are looking will see that the previous lease isn't still in effect due to production, etc. Most assuredly worth your staying after them to get it done!