my sisters and I signed a pooling agreement with Resolute which only covered 39 of the 80 acres leased to them ~ do they have to pay to extend the lease on the balance?
If you have Pugh language, and they wish to extend, then yes. They would have to pay your Option/Extension bonus based off the balance of the acreage outside the Unit.
If you do not have a Pugh, the entire leased premise will be held by production.
Thank you - we do have a Pugh clause but I think it only addressed depth ~ I’ll check that Thanks again John
On that same note, if you have a Depth Pugh, they could extend the acreage within the Unit as to the depths that will expire.