Replies to This Discussion

Permalink Reply by KAYBABY on August 6, 2008 at 8:45

just contact them that is the first step

Permalink Reply by Dion Warr, CPL on August 8, 2008 at 4:42

Paul:

In many cases, the old leases did not have Pugh clauses (horizontal or vertical), or any specific strata provisions. Pugh provisions did not start making it into leases (as riders, if not in the form directly) until the late 1940s and 1950s. Stratigraphic Pugh clauses (alternately called horizontal or vertical Pugh clauses by different people for different reasons; I prefer the stratigraphic term because there is no confusion) did not commonly enter into lease agreements until later.

In general, if you own acreage in a producing unit or lease, and there has been no long interruptions of production or operations on the well holding same, the old lease is probably good as to all leased property and at all depths. Even with a traditional Pugh clause, production from any zone holds the lease to all depths as to the unitized acreage (or retained acreage, as provided in the lease provisions).

It is worth contacting the lease owner or operator's land department to find out what lease(s) is holding the interest. Find this lease (or these leases) and make a copy of it (some companies will even send you a copy from their files as a courtesy). That is a start.

Since production also serves to hold any existing mineral servitudes, any mineral reservation made at any point during the active history of the well may be holding that mineral reservation in favor of the party (or their successors) who made the mineral reservation. This can get complicated, and I would suggest consulting an attorney or land professional to assist you if you feel yourself getting in "over your head".

Hope this helps, and good luck to you.