Woody Kent Cowan. Reeves County, Texas. Section 6, Block C-18; Section 20, Block C-18. Have
extended lease on these sites. Due to expire March 20, 2018. If the operator drills on these sites
before March 20, 2018; can they still hold the the lease, preventing me from leasing the same sites
to another operator?
IANAL. :)
If they drill and establish production before your expiration date, then of course the lease is still in force. If they start drilling, but only complete it after your expiration date, the effect depends entirely on what your lease document says about this.
In all of my leases, the lease is regarded as still in place, but my Exhibit A further limits this as follows:
COMMENCEMENT: Commencement of a well according to the terms of this Lease will require that a
drilling rig capable of drilling to total depth be on location and drilling on or before expiration of the primary term, and that the drilling of said well be continued with due diligence until completion. Construction of a well location without actual drilling as detailed above will not be deemed commencement of a well.
What does your lease say?
Sorry for late reply. Have copy of Amendment to Extend Lease, but cannot find my copy of the
original lease. I know what your thinking! Have called for copy. Do you know who to contact
for activity information on the site?