5 years ago we leased or Section 22, T7S, R2E, Love county for 3 years with a 2 year option. They took the 2 year option. Over the last year and a half, we have been told over and over a check will be coming in a couple of months. Back in Feb of 2020 we received an “Order Dismissing Cause”. What does that mean? Also the Lease is up in September. Will they have to pay up again if I am still not receiving checks yet? It’s my understanding the well is finished. Can anyone let me know what is going on? Thanks
Guessing the Order Dismissing Cause was termination of a pending legal/court action.
If a well has been completed, the lease would be perpetuated beyond primary term by continuous operations or production (for which you then receive royalty).
If you never received option to extend payment, file an affidavit in courthouse records called Affidavit of Non-Payment of Lease Bonus for Option to Extend. This will serve as constructive public notice that they failed to pay the bonus, lapsing the lease, which would put you in pay as an unleased mineral owner in the production (8/8ths rather than lease royalty).
Also, in OK, you have to make request for a Formal Release of Oil and Gas lease, (retroactively effective 3 years after primary term)…it is not a state where the lease automatically terminates at the end of the term, I do not believe.
If you are talking about the TIMS 1-35H26X27X22X15, the well was spud 3/29/22 and Completed 4/21/23. Do not expect a royalty check until October 2023. They will not be paying an additional bonus if the well is productive. This is a long well and will have hundreds if not thousands of mineral owners to check title on, the DO may take a while to get done due to the extra sections. The well is currently not showing up on the OTC tax site, but it is usually a few months behind.
Check your lease to see if you were actually owed a payment for the option. Many do not have a bonus attached.
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Thanks for the information. You both helped!
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