We have offers from multiple entities for the same mineral interests, however the offers relate to two different companies planning two different wells at two different depths. All of the depth clauses I have seen expire at the end of the primary term, which I assume means that you can’t execute two different leases at two different depths at the same time. Is it possible to do this? The wells are Midge and Gathers. I’ve never had this situation, so I’m not sure how to handle this. Thank you for any assistance.
Pooling orders are about to come out for both of those. Make sure you make an election and send it in.
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You can sign leases for two different depths on separate leases. For example, you could sign a lease for the depths of the surface to the base of the Mississippian formation and then a second depths for all depths below the base of the Mississippian formation. But, be careful. The question suggests that depth clauses are involved.
BCE-MACH has a pooling for the Mississippian 2026-001439. They plan two wells. Three section horizontals. The hearing date was 4/27/26. Watch closely for the order as you only have 20 calendar days in which to answer. At this point, you don’t really have time to get a good lease. Most of us would pick the highest royalty as the royalties from successful wells over many years far outweigh the one time bonus from a lower royalty. Error. (hit the Error word), check early, check often as activity has already begun.
The wells have already been spud. Gathers 28-21-16-11-10 1H which goes into the sections just to the east was spud 4/5/26. Gathers 29-20-17-11-1n 1H was spud on March 31
2026-00270
Thank you Martha. If I can ask a followup question - the Midge well is with Thunderbird, and they are leasing the same interest. Can I execute leases for both? Or do I have to choose.
The Thunderbird group is leasing for what looks to be Novo II Operating, They plan the Midge well starting in section 5 and going north into 32 & 29 in the Deese.
Here is a picture of the stratigraphic column that may help you understand the layer cake geology and how leasing/pooling works.
If you lease, the agent wants to lease from the grassroots of the surface to the center of the earth. Mineral owners may not want to do that unless they can get an excellent lease at the highest royalty amounts because they can be held for decades.
You can depth limit a lease, but usually only on the deep side, not by cake layers. You can also lease above and below a pooling, but takes special language.
Pooling can accomplish independent zones and get you multiple bonus amounts. BCE MACH wants to drill the MISS (in green). They would want to lease everything because that gives them the DEESE, MISS and WOODFORD and everything else. They have already had the hearing for the MISS, so that limits their drilling to only the MISS (and the rig is already drilling). You only have a few days in which to get a lease with them (not their draft which is all in their favor and not yours). If you pool with them, you will allow them to drill in the MISS. The rest is open! Bonus #1
Thunderbird wants the DEESE which is shallower. They would also like to lease everything, but you are in a time crunch to get a good attorney for a good “everything” lease. You could lease with either of them, but it has to be before the pooling.
If it were me, I would pool with BCE-MACH and take the highest royalty. Bonus #1. That leaves the DEESE and WOODFORD open. Then I would pool with Thunderbird/operator for the DEESE, which leaves the WOODFORD open. Bonus #2. And also leaves other zones open to lease or pool later. Bonus #?
