What happens if you are not in pay status and your lease ends? Reeves county Texas Thank you whomever can answer.
If there is no drilling on your lease in the primary term, then the lease expires of its own terms. If they did drill and there is production, then the operator has the statutory time frame in which to pay you or they owe interest on top of the royalties. The lease then goes into the secondary time frame. Contact the operator if there is a well and you have not been paid.
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I believe if you signed a lease and received royalties, they literally own you. You have to wait until they shut in the wells. Not sure about terminology but you’re not able to sign a new lease with some other company. That’s my experience. I am careful about bonus payments when I sign a lease since it might be the last one I’ll get
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I wasn’t clear enough . I am in suspense , not pay status.
Thank you Brenda I did not know all that stuff when I got leased. I think they count on that. I wasn’t clear I have been in suspense as I am trying to cure title.
If the operator has you in suspense, then you need to contact them to find out what they need to clear title. It can vary slightly by state.
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You can limit the time of shut-in in the lease. The payment for shut-in is usually quite small. Try to insert language limiting the total shut-in to 2 years. That would be a cumulative time for the life of the lease. There might be several shut-in periods, but the total would be subject to the limit you negotiate.
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