Extending Mineral Rights?

Can someone help me with this:

I own mineral rights to property that will expire in 2 years.  What are my options with regard to leasing this property and is there anyway to extend the rights short of having someone drill on the property?

Thanks for any help you can give me.

Rose

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Oil & Gas ProPermalink Reply by The_Baron on October 11, 2010 at 4:19
Without a location its a little hard to comment.
Permalink Reply by Rose on October 11, 2010 at 4:31
The property in question is in Natchitoches Parish near Black Lake. Does this help?
Rose

Oil & Gas ProPermalink Reply by The_Baron on October 11, 2010 at 5:02
Yes Rose, Thank you.

How many acres are involved?
Permalink Reply by Aubrey C. Sanders, Jr. on October 11, 2010 at 4:48
In order to respond to this query it is essential to know at least what state in which property
is located. Different states have different rules regarding the severance of mineral right from the land.

I am just guessing that this property was sold with reservation of mineral rights by seller. If property is in La. the mineral rights would revert to buyer in 10 years from sale date in absence of constructive usage. Certainly you can enter into lease if you find a buyer. In the absence of development or use of your mineral rights within the 10 year prescription you will loose your rights. If your land is within a designated drilling unit your rights are preserved so long as there is ongoing drilling in said unit, and will be preserved long as production continues, and for a period of 10 years after production ceases. This is how it works in La. IN ar. MINERAL RIGHTS MAY BE SEVERED PEMANENTLY FROM THE LAND.

Oil & Gas ProPermalink Reply by The_Baron on October 11, 2010 at 5:01
If your land is within a designated drilling unit your rights are preserved so long as there is ongoing drilling in said unit

While this is true, it is important to remind anyone that only the lands included in the unit will have prescription interupted.
Permalink Reply by Rose on October 11, 2010 at 5:09
You are correct. The land was sold and mineral rights were reserved for 10 years. In 2 years the rights (10-year period) will expire. Can I lease the property for 3 years and in effect extend the holding period an addional year?
Rose

Oil & Gas ProPermalink Reply by Dion Warr, CPL on October 11, 2010 at 5:23
Rose:

No. The mere act of leasing will not serve to interrupt prescription. A good-faith attempt to explore and/or produce minerals (ie, spudding a well) would do it; certainly leasing your minerals would support the endeavor.

landownerPermalink Reply by Mac Davis on October 11, 2010 at 11:03
"mineral rights were reserved for 10 years" sounds strange.

Did you specifically reserve the mineral rights for 10 years when you sold the land? Or did you reserve the mineral rights and realize that you lose them after 10 years in many cases?

Oil & Gas ProPermalink Reply by The_Baron on October 11, 2010 at 7:39
Without any more info, I will answer as best I can...

I am assuming you are near Black Lake as you said, but do not have any of the older productive wells on your land, or you are outside the Black Lake Field.

If you have enough acreage it could be possible to lease for cheap in exchange for a drilling commintment to interupt prescription, Black Lake is currently too far east of the HA to hope for a well or great lease in the near future. it is worth noting that CHK does own some old well in Black LAke Field, they may have bought these just to get some acreage though, it looks like it happened back in 2004 or so. There are no HA units in Black Lake Field.

If you have a lot of acreage, and money you could always hunt for some one to partner with to drill a well to interupt prescription.

However, if you have a small position, it may be difficult to get your land drilled soon, baring some great discovery.
Permalink Reply by a on October 11, 2010 at 9:27
Rose,

Do you know the section, township, and range? How about the number of acres?

Thanks

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