option to extend lease with gas company

WE signed a lease with xxxxx gas co, 5 years ago for a small amount of acreage. Our term is expiring in may and they already sent us a check for a new 5 years. We didnt know that was in our lease until we got reading that the gas co has the right to extend for same going rate. The lawyer we had look over our lease at the time apparently wasnt too knowledgeable. Do i have any options at this point to not sign the check and take to my NEW attorney to see if they can help me renegotiate for the going rate. I know I can ask my attorney this question, but I quess that 1 hour session with him will cost me 150 bucks and this session is free! I want to know if anyone has had any luck with this and what my options would be. Has anyone else come up agianst this. I also have another larger amount of property that I signed in a lease at the same time with same company and havent got anything on that. I am assuming that means Im in a unit that is near to me, am I am to renegotiate that? I havent offically recieved div orders that im in a unit and that lease is also expiring in may.

thanks agian

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Permalink Reply by Dexter Green on April 12, 2015 at 1:18pm

If they have a right to extend the lease then they have a right to extend the lease.  Lots of people have tried to fight this and I have yet to hear about anybody who has actually won.  What company did you originally sign with?  Do they still own the lease?  What state, county, etc?

Permalink Reply by kit on April 12, 2015 at 1:22pm
Stat oil...back then it was north wood energy..state ohio
Permalink Reply by Dexter Green on April 12, 2015 at 1:56pm

Pretty sure you're stuck.  Upside is that Statoil is a really good company and they're going to eventually drill every inch of their leasehold.

Permalink Reply by Trapper on April 12, 2015 at 1:44pm
It pays to know what's in your lease. Did you ever read it yourself? I have verbiage in my lease that is pretty clear in this regard.
Permalink Reply by kit on April 13, 2015 at 3:20am
our lawyer never explained the lease. just told us everything was ready. we trusted he knew was knowledgeable in what he doing
Permalink Reply by Finnbear on April 13, 2015 at 3:27am

You entered into a business contract with a company you don't know that could potentially involve hundreds of thousands, or possibly millions of dollars and you didn't bother to read it and fully understand it beforehand?

Permalink Reply by Dexter Green on April 13, 2015 at 6:22am

Welcome to the American Dream.

Permalink Reply by Finnbear on April 13, 2015 at 3:11am

If you originally signed a lease that allows them a renewal, then they are allowed a renewal.

Don't you know what you signed the first time?

Permalink Reply by Jim Morris on April 13, 2015 at 10:20am

My lease expires in 9 months with chk 70 acres in harrison county shortcreek township. Was wondering if they will extend my lease 5 more years, they have the option to do so. Was wondering if anyones lease has been renewed of do you think they will expire or be flipped in our location?  Thanks Jimmy

Permalink Reply by john e. shiben on April 16, 2015 at 10:39am

No 1, take your lease and go see an attorney that  deals with oil and gas leases.

No 2, most oil and gas leases must be held by production. If they didn't drill your lease should be open to negotiation.

Permalink Reply by kit on April 19, 2015 at 3:48am

yeah, so apparently our attorney wasn't as knowledgeable as he should of been. That was 5 years ago. SO i am getting two different conflicting answers here. One is they have the option and the other is take to attorney if not held by production. First off, it does say they can renew, but secondly I am not held by production. and my attorney is charging me 200 bucks to review if i want him to.

So,if am I not held by production, do i have a chance to renegotiate.

thanks again

Permalink Reply by Finnbear on April 19, 2015 at 3:39pm

What is the wording in the clause that allows them to renew? Can you post that here?

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