Saturday, December 10, 2011

Question about natural gas lease?

Nearly three years ago, my husband and his brother signed a mineral lease on 10 acres of land they jointly own in NW Louisiana. It was for a period of thee years, beginning July 28, 2005. No drilling has taken place on the "unit" that their 10 acres is situated upon. Since this lease period will be ending soon, I'm wondering what we could expect to happen next. Can it be renewed automatically even though there hasn't been any drilling activity? If it is renewed, can we re-negotiate a higher lease payment (we're in the edge of the Haynesville Shale, leases are now 10x or more than we were paid three years ago). Any advice or information is greatly appreciated!

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