# Reeves County Section 301 - Lease Extension?
**URL:** https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524
**Category:** Reeves County, TX
**Created:** [June 22, 2019, 5:56pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524 "2019-06-22T17:56:07Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@dpdionne](https://www.mineralrightsforum.com/u/dpdionne)
#### Post date: [June 22, 2019, 5:56pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/1 "2019-06-22T17:56:07Z")
My elderly (but very healthy) mother has a 5 NMA lease in Reeves County, Section 301 that was originally leased 5 years ago. It was renewed for 2 years in 2017, and they want to extend the lease for another 2 years. To my knowledge, they have not started any drilling yet. I’ve asked if they have any intention of drilling soon, but they will not answer the question.
The last 2-year extension paid $13K, but I’m curious about 2 things: 1) Should she keep renewing the lease and, if so, what is a fair per NMA price? 2) Should she decline the renewal and let the lease expire—with the possibility that someone else will offer to lease with the intention of drilling soon. Things to consider: My mom has lived a very humble lifestyle and has never had much in the way of monetary things—current income is $800/mo SSI. This may be her only opportunity for a substantial gain that will see her through the remainder of her life a bit more comfortably.
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### Author:  [@Liz\_M](https://www.mineralrightsforum.com/u/Liz_M)
#### Post date: [June 22, 2019, 6:45pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/2 "2019-06-22T18:45:39Z")
I’m not an expert but I am a mineral owner in your general area. Unless the original lease was negotiated by my expert oil and gas lawyer, I definitely would not sign an extension. IOW, if I had pretty much signed the lease handed to me by the oil company, I’d be verrrrry happy to get out of that lease! Oil company leases naturally favor the companies, often bigtime.
Even if that lease had been negotiated by my lawyer, I still might not want to extend it. Some important legal things have changed in the last few years! You want an expert to make sure that your original lease, or a new lease, has precise language to keep the oil company from deducting expenses against your production. The wordage that used to work in leases often no longer does and mineral owners are suddenly finding that substantial sums are being deducted from their oil revenues.
In addition, bonuses have gone up quite a lot in your area in the past five years. Bonuses can go from maybe $8,000 to $12,000 or even $15,000 an acre now, three-year lease, 25% royalty.
We never negotiate a three year plus two year lease. The owner never wins with that scenario. Longest we will go is three years. But leases can be as short as a year (with lower bonuses, of course).
If you need a good mineral lawyer, we’ve used Wade Caldwell and been very happy with him. He is listed on this site somewhere. Best luck to your grandmother!
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### Author:  [@Melissa\_Avery](https://www.mineralrightsforum.com/u/Melissa_Avery)
#### Post date: [June 22, 2019, 10:16pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/3 "2019-06-22T22:16:42Z")
Can anyone recommend a lawyer who will handle smaller parcels of land? I have two situations pertaining to top real estate. I own both top and minerals. Between 15 and 12 top and 20 mineral.
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### Author:  [@dpdionne](https://www.mineralrightsforum.com/u/dpdionne)
#### Post date: [June 23, 2019, 6:52pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/5 "2019-06-23T18:52:01Z")
Thank you for taking the time to respond! I think that’s great advice, and I’ll definitely look into doing just that. Thanks again - David
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### Author:  [@Stephen\_Watkins](https://www.mineralrightsforum.com/u/Stephen_Watkins)
#### Post date: [June 23, 2019, 9:26pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/6 "2019-06-23T21:26:53Z")
dpdionne,
Ms. Liz\_M gave you good advice! I am a longtime partner/owner of mineral rights that are currently producing and I had a very good lawyer guide me, help me, and actually composed a very comprehensive, I hope, lease agreement back in the seventies. My lawyer back then has retired a number of years ago so we have a new lawyer now. What Ms. Liz\_M stated about the current situation with old lease agreements is absolutely what is now going on in the State of Texas! dpdionne - get a lawyer and allow the lease extension to expire. Negotiate from there!!
My best regards,
Stephen Watkins
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### Author:  [@dpdionne](https://www.mineralrightsforum.com/u/dpdionne)
#### Post date: [June 23, 2019, 9:44pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/7 "2019-06-23T21:44:24Z")
Thank you for reinforcing her recommendation! I have already sent an inquiry to Mr. Caldwell 👍
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### Author:  [@Greg\_Grinnan](https://www.mineralrightsforum.com/u/Greg_Grinnan)
#### Post date: [June 24, 2019, 2:23pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/8 "2019-06-24T14:23:04Z")
Great advice, Liz! Never sell your minerals, but in your mom’s case, if the bonus is 15K an acre, she possibly could get an offer to sell for 45K an acre, for a total of 225K. If they don’t drill it for another 5+ years that money might help, don’t forget Uncle Sam will take a bite out of that as well. Good luck.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 5:06pm UTC](https://www.mineralrightsforum.com/t/reeves-county-section-301-lease-extension/47524/9 "2025-01-11T17:06:26Z")