We signed a lease with Quicksilver (now under SWEPI) and they gave us $500 per acre. The first 3 years is up and now they have the 2 year extension option and they offered us $250. It does have all the stupid clauses like pooling and taking expenses out of our share. We never had it reviewed by an attorney. It's in 6N 90W just south of Buck Peak but not within an established field. What do you think, just take it since interest is waning there anyway or try to get the $500 again. It's just a 6th we share of 360 acres and I'm only 1/4 owner with my mom's siblings so it's only about 16 acres that I own and the amounts not significant.
This article might help, or just reinforce the dilemma - Drilling for natural gas and oil in Northwest Colorado. Also, if they are not doing a straight renewal per a lease option, then it may be a good opportunity to correct those "stupid clauses" you mention if you would opt to accept their pricing terms.
The information is for general information purposes only. This should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided.
Hi, just want to say we are holding a lot of the same leases. No offer as of yet. Wanted to say - I agree with the suggestion of Jenna's ' ''it may be a good opportunity to correct those "stupid clauses" '' They are stupid yes, but if you can get them changed, to be better for you, go for it. Always nice to have the cleanest contract you can. That is my feel-in, anyway.
best of luck to you...
Jenna H. Keller said:
This article might help, or just reinforce the dilemma - Drilling for natural gas and oil in Northwest Colorado. Also, if they are not doing a straight renewal per a lease option, then it may be a good opportunity to correct those "stupid clauses" you mention if you would opt to accept their pricing terms.
The information is for general information purposes only. This should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided.