Seismic Testing Offer After Our Lease Expired???

Our current lease just expired at the end of November. Just received a seismic testing offer in the mail from  the company that we had our lease with...Our lease terms were right to first refusal. Why would they wait until our current lease expired to offer seismic testing. And are we bound in any way with the previous gas lease..What is the current rate per acre on seismic testing and what kind of addendums should we have in place??? 

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Permalink Reply by Mark McGrail on January 8, 2014 at 6:14pm

Ryan,

Did you notify the company that the lease term had expired ? If not you could be bound by the terms of the lease; I emphasis "could" be bound. It all depends upon the terms of your lease.

As for why a request for seismic testing would come after the end of the primary term of your lease: Perhaps the company believes the lease remains in effect. Perhaps one department of the company doesn't communicate effectively with another.

 

Permalink Reply by JK on January 8, 2014 at 6:20pm

Sounds like you may be in an even better position now.

You seem to know your lease is expired.

Just to make sure all is ok you may want an attorney to make sure for you.

Permalink Reply by Mark McGrail on January 8, 2014 at 7:34pm

JK,

I am a big fan of land owners using knowledgeable attorneys ( real oil and gas attorneys). This instance is a good reason for using a "real" oil and gas attorney. Depending on the hourly rate this correspondence shouldn't cost very much, and you want this done properly. The O&G companies have been known to play games with land owners trying to properly terminate a lease.

If not done properly a land owner will not be able to enter into a new, and hopefully better lease.

Permalink Reply by High PT on January 8, 2014 at 11:20pm
We have made contact with gas company and we are officially terminated with our origional lease...the seismic testing company that is offering to test on our land is affiliated with our previous gas company...it is pretty much boom or bust if we agree to go ahead with the testing without new mineral rights lease... We are asking for the results of the seismic testing in our addendum's...whether they agree to our terms or not it is to be seen...guess they would not have bought out $100,000,000 worth of leases from another company with less then a year left on the leases if they thought they weren't going to make some money..
Permalink Reply by Paul on January 9, 2014 at 11:30pm

$5.00 per acre

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