landowner

Confused about expired mineral rights & lease

1 person (MO1) owns 40 acres but has mineral rights to only 20 of those acres .  A second person (MO2) owns the rights to the other 20 acres.  Petrohawk leased all forty acres from both mineral rights owners (MO1 & MO2) for 3 years (20 acres each).  MO2's 10 year mineral ownership expired during the lease but before any production.  I know the mineral rights for the 20 acres of MO2 transfer to MO1who will now own the rights for all 40 acres.  What I don't know is what happens to the lease that MO2 signed which has not expired ?  Will Petrohawk now have to renegotiate the lease with MO1 for the 20 acres or what happens now ?

P.S. I'm pretty sure (not positive) a well is currently being drilled on a section (T8N-S12-R12W) that has been unitized with the 40 acres in question T8N-S15-R12W (HA RA SUW).  Any help would be greatly appreciated.  I did research but couldn't find an answer.......

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Replies to This Discussion


landownerPermalink Reply by J B Nabors on November 25, 2011 at 9:33
First: The lease on the 20 acres of severed mineral ownership ***may*** not have prescribed. If any well was Initiated--with the serious intent of mineral production--prior to the 10-year prescription of MO2's mineral ownership, the prescription is interrupted and must start anew. You may need to review your lease carefully to determine what constitutes "Drilling operations".

Second: if MO2's mineral ownership has prescribed, it would seem likely that MO1 would effectively hold two leases--the one he signed on his 20 acres, and the one MO2 signed on his severed 20 acres. The terms of the two leases may be identical, or they may bear no similarity to each other.

landownerPermalink Reply by James on November 25, 2011 at 9:54

I checked SONRIS and didn't see any wells in the adjacent sections on all four sides so I should be in good shape.  The section in question is T8N-S15-R12W.  I'm pretty sure both leases are identical.  Thanks for the reply, I really appreciate it.....

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