Can one company buy a lease from another company if there is a producing well on the property? If so, what about the mineral rights?

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Hello Teri,
Yes they can, but If a company sells a lease or rights to a section of property,the said property would still be under the same lease.If you owned 25% and were getting royalty check from Exxon. Exxon sold lease to Encana.Encana would then pay royalties to you.Your mineral ownership wouldn't be affected by lease holders changing ownership.Hope that helped answer your question.
Snakestewart,
Does Exxon have to advise the royalty owners of the fact they sold the
lease to Encana?
I have learned a lot from your answers and I appreciate your time.
Hello James, Great question.I do not know for sure if this is the case or not.I am sure some of our posters with more knowledge on this subject can enlighten us.
Absolutely. This happens all the time. At the early stages, you may see smaller intermediary companies snatching up bits and pieces with leases on small tracts, and a larger player coming in and buying those leases as a block. Also, lessees can "slice and dice" the leases, assigning or subleasing only certains depths while keeping other depths for themselves.

The standard-form Bath lease in wide use in North Louisiana does not prohibit this. Some larger landowners/mineral owners are able to successfully insert clauses in their lease that prohibit assignment by the lessee unless the lessor consents.

In the event of an assignment or sublease, the assignee or sublessee owes all of the original lessee's duties under the lease to the lessor (the landowner or mineral owner). The original lessee is not released from liability on the lease, unless the lease provides for it.
We leased our 255 acres to KCS in July 2005 and Petrohawk bought them out 2 years later which transfered our lease to them. Now, Petrohawk must drill and produce on our land before July 19, 2008....or the current lease will expire. We don't think they will drill or pool our land within the next 34 days. They have offered to renew the lease but we will be looking to renegotiate the lease with Petrohawk directly or any other company who wants 255 acres in Claiborne Parish 2 miles from a producing well that was drilled by Contour Energy. ( 2 sections away which is about 2 miles from us.)

Also, we would not be in such a great position right now if we decided to lease our land for 3 years with a 2 year extention....I firmly believe the lease should not be longer than 3 years if they do not drill on or pool your land and drill to produce. Which is what we did 3 years ago. :o)

Right now it's the waiting game.

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