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Permalink Reply by adubu on June 29, 2010 at 13:45

when you lease your minerals if the lease does not have specify limits of depth then you have leased surface to China without any depth limits. They can drill a shallow well then HBP (hold by production) all depths and formations. Most newer leases in last 5-10 years have pugh depth clause that will hold lease only to deepest drilled or production during the time duration as spelled out in your lease or it maybe specifically defind such as lease is including only to depth thru the Cotton Valley Taylor sands (Which is just above the shale formation) so you still own and control shale and everything below it and therefore another company could lease this deep rights and drill a shale well even if the other operator has not drilled anything. You can also just lease the deep rights to the shale and below and still have other formation to lease. You must request these depth limits in lease if not landman will not include them. It's best to have the first lease you sign have it review and written by YOUR attorney (Board Certified Oil & Gas attorney)

Permalink Reply by gloryc on June 29, 2010 at 14:54

Thanks for the info. It sounds like we may need to get a lawyer to look over our lease or mabey just call the company we are leased with. I have not been able to find anything in it concening deep rights. I realize it's to late to change the lease that goes back quite a few years, but like so many other leases were signed without a lot of knowledge, never thinking that one day all this activity would be in the Martinsville area.

Permalink Reply by adubu on June 30, 2010 at 0:45

gloryc---do you have producing well on your minerals so it is HBP since you say the lease goes back quite a few years? Who are you leased with? If you are in Martinsville area which Survey location?