Lease Expiration Claims
Oil and gas leases frequently provide for a “primary term” of a set duration to allow oil and gas producers to explore for and begin to produce oil and gas. At the end of the “primary term”, the lease may continue in effect into a “secondary term” if the oil and gas producer satisfies its lease requirements. In most oil and gas leases, the “secondary term” lasts as long as the oil and gas producer satisfies the obligations in the lease, which usually demand the production of oil and gas in “paying quantities”. Questions often arise regarding whether an oil and gas operator has satisfied the lease requirements to maintain the lease in effect past the end of the “primary term”. At other times, there are questions about whether an oil and gas operator is complying with the lease requirements during the “secondary term”. If you believe that an oil and gas operator has failed to comply with the terms of your oil and gas lease, the oil and gas attorneys at Houston Harbaugh can assist you in evaluating whether a claim exists that the oil and gas lease has terminated and in addressing the issue with an oil and gas operator, whether through negotiations or litigation.