n December of 2018 I leased mineral rights to Texline Energy LLC and currently receive royalty interest checks from Jamex. The terms of my lease were three years with option to extend. I have not received any paperwork from Texline, yet I do continue to receive royalty checks from Jamex. I believe I should have been paid an upfront payment for the next lease term, in addition to the royalties I continue to receive. Any ideas on how to research what is going on/whether some company needs an updated agreement with me to be able to continue using my rights?
You won’t receive any additional lease bonus money. The current lease is in effect for as long as there is production.
The first three (or whatever your lease says) years of your lease is called the “primary” term. It allows, but not requires (unless your lease says so) them to drill a well. If the well is successful, then the lease moves into the “secondary” term and this terms lasts as long as there is production that satisfies the clauses in the lease. You will not receive any further lease paperwork or bonus. The royalties that you receive are your compensation and your rights are being used as agreed upon.
Thanks! It looked to me like they had to opt in to anything beyond the first three years, but it sounds like that would not be the usual case.
Thanks, When I read the lease it looked to me like they had to do something to continue it, so I was curious about why I hadn’t heard from them.
Look for the words- Three (3) years, or as long thereafter as there is production…
Our lease was signed in 1982. We have had production ever since. In March and April, the electricity company turned off the power for payment issues with the producer. So, we did not have production or royalty for 2 months. It was turned back on, producing in May. How long does a lease have to go without production for the lease to be expired?
Many leases have a clause that has the time limit in it.-commonly 90 or 180 days. Examine yours. Since production is back on, it might not be worth fussing about it.
Thank you–I will try and dig it out to check!–Just wondering for future reference (I hope not necessary).
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