Pooling

Can someone tell me, if you have several plots on the same lease and only a few are in a unit when the lease runs out are the rest considered in play or do they pay to renew what's left

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Permalink Reply by Ragnars Repo on July 23, 2014 at 1:20am
If they are separate parcels of land and not in the current unit they are probably able to be re-leased. If a portion of them are in a producing unit the entire parcel may be held by production, but that would depend on your current lease language.
Permalink Reply by Dexter Green on July 23, 2014 at 6:04am

This is not accurate.  If you put 10 parcels, each with 10 acres, on one lease and do not specify that each parcel must be treated separately then putting one acre of one parcel into a unit HBPs the whole 100 acre lease.  Putting all the parcels on one lease is only advisable under two circumstances:

1. Pugh clause is included, or...

2. You really, really hate money

Permalink Reply by Kathleen on July 23, 2014 at 3:38am
It completely depends on your lease language. You need a clause stating only the minerals included in the unit are held. If that language is not there then all the minerals can be held.
Permalink Reply by Philip Brutz on July 23, 2014 at 4:24am

Do you have a Pugh clause in your lease?

Permalink Reply by joe on July 23, 2014 at 5:53am
I don't know what that is
Permalink Reply by Kathleen on July 23, 2014 at 6:52am
A Pugh clause is an added addendum to your lease, stating in this case, only the minerals/acreage placed into a unit can be held by a well or well activity.
Permalink Reply by joe on July 23, 2014 at 7:10am

 I don't have a pugh clause.Then I'm screwed I have 100 acres and only 26 is in the unit that is drilling, so they have it forever and don't have to ever drill, wow since they are wanting to amend my lease maybe I should get some changes FOR me

Permalink Reply by Nancy Mosley on July 23, 2014 at 7:42am
If they are wanting to amend it that is a time you can try for better terms. In my opinion you need a good oil and gas attorney to advise.
Permalink Reply by Dexter Green on July 23, 2014 at 7:46am

Call an attorney.  Don't screw around with this stuff.  Find someone who has been doing it forever and can get a deal done.  Pay for expertise and then never worry about whether or not you got a good deal.

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