lease extension

Does ches have to renew your lease and pay your bonus payment again if already drilling on your land? was told that if they have commenced drilling they do not have to pay you another bonus payment when original term is up. was told once drilling has commenced, essentially the lease goes as long as the life of the well. Does anyone know if this is accurate? The wording in my lease is unclear on this.

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Permalink Reply by Rich on August 25, 2014 at 12:16pm
John look at ur lease an see in the extension of terms that's what is going to tell u what u need to know!
Permalink Reply by Philip Brutz on August 26, 2014 at 3:37pm

If the gas company drills a well and includes you in the unit before your lease expires then you will not get another signing bonus.  Your lease expires when the gas company plugs and abandons the well.  

Permalink Reply by Dexter Green on August 26, 2014 at 4:07pm

Once you're under production you're locked in until they plug the well and walk away.  When did you sign the lease, who is the original Lessee (i.e. a CHK broker), etc? 

Permalink Reply by Tioga G on August 26, 2014 at 5:30pm

A lot of older boilerplate leases have clauses that hold the lease terms in effect as long as a unit is "capable of production".  A pad with a vertical well drilled and a unit declared has been upheld, I believe, as meeting the term "capable of production".  There has been significant knowledge gained by landowners regarding lease clauses since the beginning of the shale plays in the Marcellus and Utica, so it as always, depends on your specific lease terms.  Good luck, regardless. (Edited for spelling)

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