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Paid Up Oil and Gas Lease between Noack Farms SEC Gov Form

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Paid Up Oil and Gas Lease between Noack Farms SEC Gov Form

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- [Dan] Hi, this is Dan Brockett with Penn State Extension. Today, I'm going to talk a little bit about oil and gas leases expiring. Now, unfortunately, this presentation is only for Pennsylvania landowners, as each state has its own peculiar set of laws. The lessor is the whoever owns the oil and gas rights. That's probably you. And the lessee is whoever leased you the oil and gas rights. One of five things will occur, and we'll expand on these points a little further on in our presentation, but first, the lessee may commence operations. Secondly, the lessee might renew the lease ing to the terms of your lease. Not all leases, but most have a renewal clause. Thirdly, the lessee may allow the lease to expire, and then, depending on local market conditions, may offer lesser terms. Fourth, the lessee may allow the lease to expire, and another company comes along and offers lesser terms. And lastly, the lessee will allow the lease to expire, and nothing happens. So

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