Replies to This Discussion

Permalink Reply by Two Dogs, Pirate on May 24, 2015 at 5:39

Where is the property?

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Permalink Reply by Jacob Boisdarc on May 24, 2015 at 5:56

Caddo Lake area

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Permalink Reply by JHH on May 24, 2015 at 7:48

I'd think if the old lease lapsed... there's no lease.  The minerals are yours now... 100%.  I don't understand the "new well owner"... unless you signed a new lease with some unusual terms.  

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Permalink Reply by Sandbar on May 24, 2015 at 9:37

If owner is willing to invest in old well, he must see reasonable potential. The old adage of "hang on to your mineral's"?...........................(Is adage a word?)

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Permalink Reply by Jacob Boisdarc on May 24, 2015 at 11:38

So far as I know the mineral rights have been honored even though the lease had technically lapsed.  This is a new well owner or his representative who contacted the family.

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Permalink Reply by Skip Peel - Mineral Consultant on May 24, 2015 at 11:50

Your mineral rights are not tied to a well or a lease.  If you own the surface then you own the mineral right as part of your fee estate.  If you don't own the surface your mineral right is in the form of a mineral servitude.  The end of production resulted in the termination of your lease.  Without any of the pertinent detail it's difficult to provide specific suggestions.  I suspect the well in question was a shallow oil well, if so I would suggest that it is a reasonable request to execute a new lease for the operator that wants to rework the well or drill a new one.  However the new lease should be materially different than the old lease.  Under no circumstance should it be an "all depths" lease. 

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Permalink Reply by dbob on May 24, 2015 at 16:09

Are you in Texas or Louisiana?  If in Texas, do you know if this was an "orphan" well?

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Permalink Reply by Jacob Boisdarc on May 25, 2015 at 2:39

Grandfather had the land. Dad sold the surface in 1980, kept mineral rights and leased them.  Well went into production, was sold but leasee not changed, and out of production (enough to lapse the lease that was to the wrong person anyway) and then back into production.  This second operator continued for some 30 years.  Dad died. I tracked a recent royalty payment for 2013 -4 by the second operator - no other records yet.

 Yes shallow well. 

I read the lease/no lease explanation for Louisiana and pool/forced pool unitization.

Now understand that the gentleman I am talking too is operating as a "landman".  But now I need to understand him and his offer, and have a mental checklist of my own for what should be in the lease. I am still going through the introductory material I was referred to earlier.

Northwest Louisiana well Caddo Lake area.

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Permalink Reply by Skip Peel - Mineral Consultant on May 25, 2015 at 2:46

Jacob if you want specific opinions and suggestions you need to post the section-township-range location of the minerals and the terms of the lease being offered.  Post the name of the well and the last operator.

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Permalink Reply by Jacob Boisdarc on May 25, 2015 at 10:37

Thank you -- will do another day this week.

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Permalink Reply by JR on May 26, 2015 at 11:59

This doesn't sound right.  I've never heard of giving someone a lease for free.  Please accept my friend request so I can message you. Thanks.

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Permalink Reply by Skip Peel - Mineral Consultant on May 26, 2015 at 15:54

It's not uncommon when dealing with stripper wells. Especially where a mineral servitude is involved.  The key is not to give a stripper operator an all depths lease.

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