We leased with a company in nov, 2010 and through most of 2012 a pad was built, pipeline and electrical run to the site. We began receiving payments Feb, 2013 which ran to Jul 2014. After that we heard nothing from the company. We knew the pumper in our area and he told us the "pump" quit working. This was a horizontal drill. We waited and waited for the repairs to be made but nothing was ever done.
Our lease states "if at any time after the primary term, there is a total cessation of all production. for any cause, this lease shall not terminate if Lessee commences or resumes any drilling or reworking operations or production within 90 days after cessation."
It has been three years since we received any payment or any type of correspondence from them.
Has our lease terminated? What about all their equipment (piping, tanks, gauges, etc)?
Can we lease to another company? Can we force this company to re-lease or make
whatever repairs are necessary to put well back in production?
I should add that this company went through a reorganization a couple of years back if that makes any difference.
If anyone has knowledge on this issue we would appreciate hearing from you. Next step is a lawyer.