I was wondering if anyone has ever had a leasor reach the end of a lease without drilling? Our 3 year lease will end in August and I have heard absolutely nothing about even a proposed well.
It happens all the time, sometimes because they have lost interest, and sometimes because they overcommitted to the area and simply cannot get to your lease in time. There are also lots of cases where they pull in shortly before the leases expire and start the drilling process. Many leases today have an "option to extend" clause, which the oil companies like to put in. There's a lot of time between now and August. It also happens that sometimes the leases expire, and then you get to lease again and get some more bonus money.
Unless you changed the lease they first sent, they have an automatic extension of three years at the same bonus as the first one. We took that out of our lease. Don't know what their plans are, but would sure like to know.
Wayne & Nila West Murrow
where are you talking about?
Ron McKenzie said:
where are you talking about?
We are talking about
S 12 17N 4E im
Calyx lease
Hope you don't mind my response, Nathan.
I had a landlady tell me statistics show that only 6 % of folks with a lease ever get a well drilled. 94% never get a well drilled.
Clint Liles
Yes Wayne, that is the section.
Clint, I don’t like those statistics.
http://imaging.occeweb.com/OG/Well%20Records/1DD18950.pdf
http://imaging.occeweb.com/OG/Well%20Records/1DD18955.pdf
http://imaging.occeweb.com/OG/Well%20Records/1DD0DE25.pdf
http://imaging.occeweb.com/AP/Orders/occ5053854.pdf
http://imaging.occeweb.com/AP/Orders/occ5053855.pdf
I think there is another well in section 3 that is a better well then the one above . I am looking for more info on it.
I guess I was a little naive to believe them when they said that they were definitely going to drill every square inch of land that they had leased.
Clint, I have it on good authority that 97% of statistics are made up. I also think that to be anywhere near correct that the words "in any given lease cycle" should be added to what the landma'am told you.
I also wonder where people like my brother and I fall into the equation? No lease but several wells? Last time I looked there wasn't any space between 94% and additional 6%. I think the statistics are made up. ; )
Clint Liles said:
I had a landlady tell me statistics show that only 6 % of folks with a lease ever get a well drilled. 94% never get a well drilled.
Clint Liles
Mr. Murrow, an option to extend is not automatic, it's an option, they still have to exercise the option. I have heard of some crazy language though, such as the lessee has one year after the expiration of the present lease to decide if they want to exercise the option to extend, so they get a 1 year free option whether they extend or not.
Wayne Murrow said:
Unless you changed the lease they first sent, they have an automatic extension of three years at the same bonus as the first one. We took that out of our lease. Don't know what their plans are, but would sure like to know.
Wayne & Nila West Murrow
Yes, it is an option.
r w kennedy said:
Mr. Murrow, an option to extend is not automatic, it's an option, they still have to exercise the option. I have heard of some crazy language though, such as the lessee has one year after the expiration of the present lease to decide if they want to exercise the option to extend, so they get a 1 year free option whether they extend or not.
Wayne Murrow said:Unless you changed the lease they first sent, they have an automatic extension of three years at the same bonus as the first one. We took that out of our lease. Don't know what their plans are, but would sure like to know.
Wayne & Nila West Murrow
Hey Robert,
I'll agree with your thinking 100%.
Clint Liles
r w kennedy said:
Clint, I have it on good authority that 97% of statistics are made up. I also think that to be anywhere near correct that the words "in any given lease cycle" should be added to what the landma'am told you.
I also wonder where people like my brother and I fall into the equation? No lease but several wells? Last time I looked there wasn't any space between 94% and additional 6%. I think the statistics are made up. ; )
Clint Liles said:I had a landlady tell me statistics show that only 6 % of folks with a lease ever get a well drilled. 94% never get a well drilled.
Clint Liles
Nathan,
I'm with you.
Clint Liles
S Nathan Roberts said:
Clint, I don't like those statistics.
Nanthan, Is your mailing address of record which the last leasing company used to contact you still your current address? Sometimes a company may contact a mineral owner and offer a new lease, but if the mineral deed address of record is not the current address a company may not be able to find the mineral owner and have to pool the unknown interests before they drill. Since the pooling notice will be sent to the last known address of record, it may not be received either. If needed, an affidavit or ownership can be filed stating the current mineral owners address and filed in the county where the minerals are located.
My 3 yr lease had a two year option attached & they didn't do anything until 4 months before the 3 yrs was up. That was last August when they finally drilled. They *just* started fracking it this week. The neighbor didn't get bonus money again because it was 'held by production', they told him, since they had drilled it.
Thanks to my lawyer, I had a depth clause. :-)
Go Fast, here's one of the newest Addendum clauses: Sub-terrain Easements: No sub-terrain, or subsurface easements are granted for use outside the spacing or statutory well unit.
Thanks, Martha. I'll have to keep learning about this - my lawyer was made a judge & isn't keeping his private practice anymore.