# Reeves County - 3 yr. Lease and Option for 2 yrs

**URL:** https://www.mineralrightsforum.com/t/reeves-county-3-yr-lease-and-option-for-2-yrs/2550
**Category:** General Mineral Rights Discussion
**Created:** [June 27, 2017, 7:24am UTC](https://www.mineralrightsforum.com/t/reeves-county-3-yr-lease-and-option-for-2-yrs/2550 "2017-06-27T07:24:56Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![Brenda\_Johnson](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/b/b782af/32.png) [@Brenda\_Johnson](https://www.mineralrightsforum.com/u/Brenda_Johnson)
#### Post date: [June 27, 2017, 7:24am UTC](https://www.mineralrightsforum.com/t/reeves-county-3-yr-lease-and-option-for-2-yrs/2550/1 "2017-06-27T07:24:56Z")

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H&GN Section 52 Block 4 Leased until Oct 2017. A well started drilling a few months ago.

What happens when the lease is up this October? Does the drilling company have to pay another bonus?

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### Author: ![James\_Marrow](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/james_marrow/32/14142_2.png) [@James\_Marrow](https://www.mineralrightsforum.com/u/James_Marrow)
#### Post date: [June 27, 2017, 9:16pm UTC](https://www.mineralrightsforum.com/t/reeves-county-3-yr-lease-and-option-for-2-yrs/2550/2 "2017-06-27T21:16:37Z")

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If the well is productive in economic quantities, you will receive royalty payments and the lease is “held by production.” No more leasing until the well is abandoned.

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### Author: ![Cam](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/cam/32/1779_2.png) [@Cam](https://www.mineralrightsforum.com/u/Cam)
#### Post date: [June 29, 2017, 1:17am UTC](https://www.mineralrightsforum.com/t/reeves-county-3-yr-lease-and-option-for-2-yrs/2550/3 "2017-06-29T01:17:32Z")

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Brenda,

James is correct. If the oil company drills a well during the primary term of the lease and that well produces, it will be “Held by Production (HBP)”. As long as a well is producing on the lease, it will remain valid. Now if you have a “pugh” clause in your lease, it might release some of your acreage. But generally it will remain valid until production stops. I don’t want to confuse you too much with the pugh clause language.

Let me know if you have any more questions.

Cam

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 14, 2018, 10:24pm UTC](https://www.mineralrightsforum.com/t/reeves-county-3-yr-lease-and-option-for-2-yrs/2550/4 "2018-08-14T22:24:11Z")

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