Replies to This Discussion

Permalink Reply by Frank Walker on February 14, 2015 at 8:15am

Sure, why not?  Yes, of course.  

I'm assuming you already have received in writing a partial release of lease for the 25% portion of your land you now wish to lease going forward.  That written partial release, ideally, will include a map showing the released land.  If you do not already have the partial release, you surely are entitled to it and should request it forthwith.

Permalink Reply by Robert on February 14, 2015 at 9:30am

Getting the partial release will be my next step. Thanks for your input and I will post their response to my release request. 

Permalink Reply by Mike Flor on February 15, 2015 at 10:50am

Unless your lease has a pugh clause I dont think you can re-lease the your property that is not in a unit.  Asking for a release of lease for the acres affected will tell you whether your locked in or not.  Good luck...

Mike

Permalink Reply by Frank Walker on February 16, 2015 at 3:41am

Thank you, Mike.  I should have picked that up in the OP when I responded earlier, but I did not.  Yes, of course without a Pugh clause Robert is locked in for the entirety of his land, which is now HBP.  Certainly hope he has a Pugh clause in his lease.

It's funny, I had something similar to this happen to me.  Was responding from personal experience without thinking this all the way through.  While I have a Pugh clause, I failed to remember not every landowner has one.  Pugh clauses are a really big deal, and determinative in Robert's situation.

Permalink Reply by Chris on February 17, 2015 at 4:06am

Depends on if your lease has a Pugh Clause which is an addendum stating that any acreage not pooled into a unit is released at the end of the term. If you don't then all of your leased acreage is held so long as there is production from any part of it. If you signed the operators lease without asking for changes then it likely does not include a Pugh.