I have been with Eclipse resource for six years last year I signed a renewal on my contract and opted for one year the payments on the signing bonus because they told me it would help them extend the cash for drilling and I said everybody was doing it and today I got a phone call saying they not going to give me the cash for my lease payment this year and we want to terminate your lease I don’t know what to say at this point , any thoughts?
Walt, my guess is there is nothing you can do. Sounds like you did not sign a paid up lease, but a delay rental lease. Under a delay rental lease they can choose to continue the lease by making an annual payment for your agreed-upon $ amount and number of years, or they can choose not to pay and the lease expires. The third possibility is that they can drill a well, and then your property is held by production and they don't have to make the annual payment anymore. Sorry it did not work out for you like you had planned, but perhaps you can lease the property again now.
What makes this site so great? Well, I think it's the fact that, quite frankly, we all have a lot at stake in this thing they call shale. But beyond that, this site is made up of individuals who have worked hard for that little yard we call home. Or, that farm on which blood, sweat and tears have fallen.[ Read More ]