O&G lease question
Can one of you experts answer these questions for me? While looking at SONRIS lease data I saw that some property I have in Shreveport shows an active lease (SL19757) covering the section. Looking at the lease data it shows the lease was transferred to Petrohawk in 2008 and that it is a state lease.
My questions are:
What is the significance of a state lease? Am I right in assuming that a state lease only involves state property? If the company owning the state lease drills a well on state property do the private land owners in that section benefit from the well? Why would an O&G company come into the same section to lease from the private land owners if an active lease is in effect even though it is a state lease?
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Replies to This Discussion
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Permalink Reply by Skip Peel - Mineral Consultant on -
Glen. State leases only cover the land where the state owns the minerals. If the lease covers less than the acreage required for a drilling unit, the lessee will attempt to lease the adjoining privately owned mineral interests. Remember that with horizontal HS wells, the surface location of the drilling pad does not necessarily indicate the location of the actual production. It is quite common for a well with a surface location in one section to be producing the minerals in an adjoining section. If there is a well permit for the section you are interested in, check the location in the first entry on the Well Scout report, It will give the surface location and the Planned Bottom Hole Location (PBHL). The section where the PBHL is located is being produced and those mineral owners will receive royalties from that well.
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Permalink Reply by Glenn Taylor on
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Thanks Skip.
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