Expiring Oil and Gas Lease? What to Look for at the End of the Primary Term of Your Gas Lease.

Expiring Oil and Gas Lease? What to Look for at the End of the Primary Term of Your Gas Lease.

Many oil and gas leases are approaching their 5 and 10 year primary terms, and landowners in Pennsylvania and Ohio[1] may find themselves confused about the duration of their lease once the primary term expires. The habendum clause of an oil and gas lease separates the duration of the lease into a primary term and a secondary term. Understanding the habendum clause, or the clause that bridges the primary and secondary terms, is crucial not only when negotiating a lease, but also in understanding whether an existing lease has expired after the primary term instead of entering the secondary term. The primary term is set for a certain number of years, typically 5 or 10. The duration of the secondary term is often indefinite, but usually requires some continued action on the part of the lessee[2] in order to keep the lease in effect.

Calling All Attorneys to Take The #YourFairShake Challenge!

Calling All Attorneys to Take The #YourFairShake Challenge!

Equal access to justice for all simply doesn’t happen when attorneys do not make a space for modest means clients in their practice. It’s not easy to make that space and it requires thoughtfulness and the will to create change. Yet, having watched Fair Shake’s young attorneys take that challenge and continuously work to mold a space for modest means clients, I think that attorneys of all background and practices (that means you too, government attorneys) can step up to the plate.

PA Supreme Court Sides With Landowners, Declines to Extend Primary Lease Term of Oil and Gas Lease

PA Supreme Court Sides With Landowners, Declines to Extend Primary Lease Term of Oil and Gas Lease

The Pennsylvania Supreme Court recently issued a major decision, unanimously holding that the primary term of an oil gas lease is not extended or tolled during the pendency of litigation by a lessor seeking a declaratory judgment. The decision is contrary to decisions in many other jurisdictions, which allow a prevailing lessee an extension of time beyond the primary term to gain production.[1]