Maybe this is old news to some but it was just brought to my attention. I wonder what will happen to my lease that is due to be renewed in a few months. Would they renew it and then sell or just let it lapse.
GLEN,
Shell may sell your lease rights and the buyer will decide about extension or lapse. Your in a good long term area in general so think long term and get a recordable release if and when the lease expires. Confirm the strength of your ownership from the original bonus money. All it takes is one good discovery and the place will heat up again.
Gary,
Thank you for your response. That is one of the possibilities I was thinking of.
I will have to learn about the recordable release, is that something I will need to send in to the county when I receive it, or does Shell file that? I presume I will need to request it from Shell.
Can you expound on your statement to “confirm the strength of my ownership from the original bonus money”? I am not sure what that means or how to do it.
Thanks for your help.
Glen Houlton
hi,
thanks that was great advice.
2bar
GLEN,
Whomever takes the lease as lessee will usually record it with the county. However, they occasionally don't get around to it out of neglect. I suggest that you contact the county recorder and look for an oil and gas lease document where you are the "grantor" and the lessee is the "grantee" keep in mind that it may not be the lessee shown on your copy of the lease. Moffat may have it filed by quarter section, township and range. You want the book, page, and document number. If you can't find a recorded lease, send a certified RRR letter to the lessee on your lease and ask for confirmation that the lease has been dropped since it has not been recorded. The lessee has the unilateral right to drop the lease.
If you had not provided the landman with an authentic title document and just took his word for your acreage, turn loose of some of the bonus money you received and get a mineral title search done so you will know the strength of your title when a land man comes calling again. The information may also tell you if you were paid the correct bonus amount. If you were underpaid, the lessee needs to know officially. Knowledge is Power!!
Spending the title money will, of course depend on how much acreage you think you have. If it is under 10 acres net, save your money and go with whatever you are offered. However, with known strength of title in an area that Shell has leased before, will be important to you and your heir's future. The Niobrara will eventually be exploited in the area according to geologic studies I have done there.
Contact me directly if you need a mineral title search helper.
Glen Houlton said:
Gary,
Thank you for your response. That is one of the possibilities I was thinking of.
I will have to learn about the recordable release, is that something I will need to send in to the county when I receive it, or does Shell file that? I presume I will need to request it from Shell.
Can you expound on your statement to “confirm the strength of my ownership from the original bonus money”? I am not sure what that means or how to do it.
Thanks for your help.
Glen Houlton