One companies standard lease says if at the end of the primary term, the gas co has commenced operations for a well, they can pause for up to one year, and the lease will extend, as long as they resume in one year, and presumably this can go on for years without end.
I would want a reasonable definition for the commencement of operations for a well, something like "a state issued permit is in hand and a rig capable of drilling to the permitted depth is on site and the bit has entered the ground".
I would also like to limit any pause to 90 days and have an absolute limit of 1 year beyond the primary term for completion of a well started prior to the end of the primary term. I'd think that any company serious about drilling a marcellus well would want to complete it in as short a timespan as possible, and that the paragraph from the standard lease mentioned above is basically a cheap way to extend the lease by pretending to drill.
Any thoughts from the group on what the industry considers reasonable time limits on delay of operations????
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