Bubba Smith
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How would you describe yourself?
Oil and Gas Professional
Zip Code
39191
Plays that you follow
All Shale Plays

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At 6:14 on January 5, 2012, Skip Peel - Mineral Consultant said…

Bubba, I just saw my earlier response about promising to get back to you with a more detailed answer.  Here it is.  As I mentioned previously, lessees do not agree to Continuous Drilling Clauses for the average mineral owner.  Since a lessor can't get a CDC they must depend on beneficial and protective lease language to balance their interests.  Some mineral owners may have sufficient acreage to allow them to get a lease covering a limited and defined formation or zone.  All mineral owners should get a standard depth clause often called a Vertical Pugh clause.  That clause limits a lessee development rights based on the deepest production established in the primary term of the lease.  Why would a lessor not want multiple wells?  The more wells drilled the better.  Every leasing case is different as every mineral estate, Play and active operators combine to create unique circumstances.  Therefore it is difficult to give specific suggestions to general leasing questions.  Regards, Skip

 
 
 

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GoHaynesvilleShale.com (GHS) was launched in 2008 during a pivotal moment in the energy industry, when the Haynesville Shale formation—a massive natural gas reserve lying beneath parts of northwest Louisiana, east Texas, and southwest Arkansas—was beginning to attract national attention. The website was the brainchild of Keith Mauck, a landowner and entrepreneur who recognized a pressing need: landowners in the region had little access to…

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