Oil and Gas Leases Don't Last Forever

On Wednesday, October 3, 2012 0 comments

There is a misconconception that if you signed an oil and gas lease years or even decades ago you are still bound to that lease. Truth is, leases for gas drillers don't last forever.

Gas Leases are set up for specific terms. According to a  recent article published by Post-Gazette, "Most leases signed in 2007 and 2008 were for five-year terms, meaning many that never saw drilling are coming close to expiration now".

If you signed an oil and gas lease years or even decades ago, your lease may not be "active". A licensed attorney can help landowners to read through their oil and gas lease language to help dermine whether or not the lease is is active and in what capacity.

When it comes to gas leases -- drillers would prefer the language in the lease in regards to expiration be as broad as possible, while landowners should demand the language be as specific as possible.

The language that explains the terms of the lease, specifically the language surrounding the expiration of the lease can mean a difference of thousands to hundreds of thousands of dollars for landowners.

It is recommended that all landowners contact a licensed attorney to receive their unique situation, lease and needs if considering entering into or soliciting an oil and gas lease.

If you are looking for a quick answer, the general rule of thumb is... do you have a well on your property that is producing gas? If you answered yes, you are most likely in an "active" lease - even if that lease is not providing you with the income you desire.

On the other hand, if there is NOT a producing well on your land - it may be a good idea to go back and revisit your lease to see how an "active" lease is defined in your lease language.

Need help? Contact Safe Shale Lease, LLC or a licensed lawyer in your area for a free personalized consultation. 


No comments yet. Be the first to leave a comment !
Leave a Comment

Previous Post
Powered by Blogger