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 BW_Appalachia on January 3, 2020 at 10:40am
Nick is correct. It is wholly dependent on operator and area. The vast majority will likely not be extending the primary terms. However, do not confuse this with the secondary term if there has already been development under the lease.
Permalink Reply by BW_Appalachia on January 3, 2020 at 1:16pm
Secondary terms don’t expire unless production ceases. You are likely in the extended primary term, which would expire as a matter of law without production by 2022. As always, dependent on specific lease language.

The difference between primary and secondary is an important one, as manner of termination differs substantially.
Permalink Reply by Joe on January 3, 2020 at 1:42pm
Thats what mine is. Extension of primary term. August of this year will be 10 yrs
Permalink Reply by william george allison on January 4, 2020 at 2:37am

With swn already paying out bonus money on 1st and 2nd term I can’t see them just letting the lease expire but anything can happen in 2years 

Permalink Reply by ray schmidt on January 4, 2020 at 3:26am

my second term with them expired april 16th they extended 6 months and had the rig up in june. call and see if they plan on drilling.

Permalink Reply by william george allison on January 4, 2020 at 4:25am

Ray that is the first time I heard of them going beyond the second term that is good to know . I have a hard time getting the same answer out of two people at swn 

Permalink Reply by ray schmidt on January 5, 2020 at 2:37am

btw im under encino my contract stated the drill bit had to be in ground by april 16 

. i think my neighbor and i were the only ones in the unit that leases were about to expire. im thankful that was stated in the lease!!!! got 3 bonuses and i think some wells are producing.harrison county  nottingham township

Permalink Reply by BW_Appalachia on January 4, 2020 at 3:50am
Ray - you’re better off going Nick’s route and checking on your own. They aren’t going to tell you more than what is of record, and it will only tip your hand that you’re interested in remaining under lease.
Permalink Reply by Don C on January 7, 2020 at 5:27am
Ray....did Atty Bill Williamson handle ur original lease?
Permalink Reply by ray schmidt on January 7, 2020 at 12:30pm

no had a.l.o.v. lease. hundreds of landowners signed at that time with chessapeake

Permalink Reply by Don C on January 7, 2020 at 1:27pm
Encino has ours now and our 1st lease was in 2011 with Chk. They decided to pay us shut in royalty when they should have paid us for 2nd term. Its still pending.
Permalink Reply by Don C on January 7, 2020 at 1:28pm
It was Bill Williams not Williamson

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