Expiring leases

With a major slow down of drilling what does that do to the 2nd term leases going to expire in the near future 3rd term or a lease extension possible?

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Permalink Reply by Joe on January 3, 2020 at 4:28am
I am wondering the same thing. I’m thinking leases will just expire
Permalink Reply by BW_Appalachia on January 3, 2020 at 5:04am

This may be semantics, but the secondary term of an oil and gas lease is after there has been production under the lease.  A slow down in drilling is unlikely to have any effect on leases currently in the secondary term.  The only plausible scenario would be for the wells drilled under the lease to be shut-in, and even at that point, it would depend upon the shut-in provisions within the lease.

Hope that helps.

Permalink Reply by Joe C. on January 3, 2020 at 5:58am

If your main 5 year term of the lease is getting ready to expire, it's up to the company if they want to extend the lease. Just because you have an extension clause in your lease doesn't mean the company has to honor it.  If it is Chevron, I wouldn't hold your breath with any extensions. There is also a lot more to this as BW_Appalachia mentioned in his reply. Who is the company and what area are you in? I can look it up to see if there is permits filed or declaration of unitization recorded.

Permalink Reply by william george allison on January 3, 2020 at 6:13am

Swn in Brooke county wv 

Permalink Reply by Joe C. on January 3, 2020 at 6:17am

My buddy is doing curative work for SWN in Brooke, they should be renewing you. When is your lease up?

Permalink Reply by william george allison on January 3, 2020 at 12:36pm

We are already in the second term it expires 2022 

Permalink Reply by william george allison on January 4, 2020 at 4:36am

Nick do you know of an up to date web site I can look at permits and pool declarations for Brooke county wv ?

Permalink Reply by Nancy Mosley on January 4, 2020 at 4:44am

Not Nick, but for permits you can go to the WV Office of Oil and Gas website Permit search WV Permits search and use Brooke for the county and pick a recent date.

For more information if you have an API number: go to the WV Office of Oil and Gas Weekly Reports section Weekly Reports and check every week for your county in the recent Weekly Reports (or from the Permits site). Then go to the ApplicationXtender site (read the instructions first) and do a New Inquiry and put in the API number as instructed. There is sometimes an abundance of information.  This is a complicated site but worth learning about.

Hope somebody can help with the documents site for Brooke County where you would find the Declaration of Pooling.

Permalink Reply by Joe C. on January 4, 2020 at 11:08am

Thanks Nancy!

Permalink Reply by william george allison on January 5, 2020 at 2:48am

Thank you Nancy 

Permalink Reply by Nancy Mosley on January 5, 2020 at 3:02pm

Glad to help. Hope somebody has the Brooke County help.

Permalink Reply by Joe on January 3, 2020 at 10:20am
Jefferson County Ohio for me. Lease is through Chesapeake who was bought by Encino. Lease ends August of this year.

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