I have a interest in 2,212 ac. that is lease in sec 19,20,21 and 22 . but my question concerns the lease and option. 3 years with 2 year option. does one have to honor the 2 year option if no dilling has occured . lease dated sept-2010 . Ray
Dear Ray,
You have to go to the specific language of the lease itself, but typically an option is just that. It is a one way option to extend the lease. You have granted that permission when the lease was executed. If the option is not exercised, then the lease expires according to its own terms, whatever they may be.
Thank you!
Buddy Cotten said:
Dear Ray,
You have to go to the specific language of the lease itself, but typically an option is just that. It is a one way option to extend the lease. You have granted that permission when the lease was executed. If the option is not exercised, then the lease expires according to its own terms, whatever they may be.
Best,
Buddy Cotten
Mineral Manager