landowner

Mutiple leases

My land is already leased and there have been gas wells on the property since the 1940's. A seismograph crew is working in that area now--supposedly looking for the shale. If they find it, will the existing company just drill the well or will Chesapeake have to come in a drill? All of the existing wells are shallow--about 9,000 ft. , but there is nothing in the original lease that gives a depth limit. So, my question is: Can two companies have leases on the same property? And--I would not get any "lease money", they would just drill, right?
BP Landowner

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landownerPermalink Reply by Bobi Carr ("parker") on April 23, 2009 at 15:18
Sherilyn,

You would not get additional lease money unless there was a (stratigraphic) pugh clause.

The company that has your rights by an existing lease can sell the deep rights to another company to drill. The new company would have to honor your lease clauses.

landownerPermalink Reply by Sherilyn Norred on April 23, 2009 at 15:29
OK-thanks. That is what I wanted to know. I would not get the big LEASE money, but I would benefit from the well--and I would assume that it would be quite profitable.
Sheri

landownerPermalink Reply by Bobi Carr ("parker") on April 23, 2009 at 15:32
Hope so.

GOOD LUCK!

landownerPermalink Reply by sheeza on April 23, 2009 at 21:20
Would the landowners royalty percentage for the shallow well remain the same for the deeper well?

thanks

landownerPermalink Reply by Spring Branch,mineral owner on April 23, 2009 at 23:06
yes

Oil & Gas ProPermalink Reply by The_Baron on April 24, 2009 at 2:58
All the original terms of your lease will remain in effect.

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