Got some minerals from someone else who had signed a lease in 2018 in Center District, Wetzel County with EQT. Dont have the original lease, but it was a year lease and just recently received a check to extend the lease, that theoretically is expired by at least one year.
Question is: Do I have the chance to not cash the check (its small $290) and fight it out with EQT for a new lease? Not sure if its worth it or if its a conscious decision by the Operator, but curious if anyone has been in the situation where they received a renewal check for a well-expired leasehold.
Without the original lease it is hard to give you a correct answer. What and for how long is the lease or document for? I personally would not sign it unless I had the documents that you are able to read.
Its a five year lease recorded in the county office, so no confusion there. Its really just a question of if an operator can just send you a check to extend a lease even AFTER the renewal period is over or not.
It depends on the exact language in the lease. Is it possible that it was a 5-year primary term (2018 to 2023) with an option to extend at the end of the 5 years? Your acquisition of minerals is subject to the terms of the signed lease.
You’ll probably find that if you try to fight it, EQT will say they started the permitting process for the well, so the lease was extended. However, they sent you a check for the extension, which should indicate that EQT thought they had to send you money to extend the lease, so permitting shouldn’t extend it. They won’t want to give up the lease without a fight. If it’s a few acres, and the bonus was small (per acre), and it was just their standard lease without some good clauses for you, then it’s worth the fight.
If the original lease does not allow them to automatically renew then sign nothing and do not cash the check. If they made you an offer and that is what the check is an offer which they hope you will be dumb enough to accept. What they are giving you is way less than what you can get. Also what are they offering as a royalty percentage which will also be bottom dollar? And are they charging fees? All of those things need to be addressed in a lease.
Anyone signing a lease needs to look up wvsoro on the internet and they will see what they should or should not do and what they don’t have to do. As with anything in life take the time to look at all resources as to what it is you are involved in it’s out there and it’s free info. As far as attorneys go do not hire one except as a last resort. Do your own negotiations and if and only if you get to a stalemate if you hire them up front they will not necessarily get you the best they can get and you are paying them for the work you have already done if you did any.
Again I point out that there is an abundant amount of info out and I will also point out there is very good info on this site also just look for it