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<blockquote data-quote="Marbleyes" data-source="post: 148653" data-attributes="member: 675">Leases aren't written for wells. They may have stratigraphic clauses in them which only hold certain formations after the expiration of the primary term of a lease if one or more wells are drilled, which isn't the most common. Yes, once a well is drilled it holds all lands on the lease unless there is what is called a &quot;Pugh&quot; clause written into the lease. In that case all lands outside the drilled well in a spacing unit (normally 1280 acres/2 sections) will be released after usually 180-365 days after the primary term, unless another well is drilled then it's normally another 180-365 days beyond the primary term, depending on the provisions in the lease. There is an initial bonus payed upon signing the original lease. That amount varies greatly. Depends on the area and depends on how bad the company wants that lease. If no well is drilled before the lease expires then you can sign another lease and get another bonus. If a well is drilled in that primary term then yes you will receive royalties for as long as that well is producing.</blockquote>

[QUOTE="Marbleyes, post: 148653, member: 675"] Leases aren't written for wells. They may have stratigraphic clauses in them which only hold certain formations after the expiration of the primary term of a lease if one or more wells are drilled, which isn't the most common. Yes, once a well is drilled it holds all lands on the lease unless there is what is called a "Pugh" clause written into the lease. In that case all lands outside the drilled well in a spacing unit (normally 1280 acres/2 sections) will be released after usually 180-365 days after the primary term, unless another well is drilled then it's normally another 180-365 days beyond the primary term, depending on the provisions in the lease. There is an initial bonus payed upon signing the original lease. That amount varies greatly. Depends on the area and depends on how bad the company wants that lease. If no well is drilled before the lease expires then you can sign another lease and get another bonus. If a well is drilled in that primary term then yes you will receive royalties for as long as that well is producing. [/QUOTE]

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