I'm still new to leasing my minerals, what I thought I was getting into with a good oil lease--I found out later that it was actually a broker that was contracted with an oil company operator. He was really nice and I'm not sure if I did the right thing in signing a oil lease with him because later on when I asked about the oil company--because the lease came from a completely different company, he said he forgot to tell me he was contracted with the operator. Is this normal? Then later the lease fell through--he said the oil company operator stopped leasing in my Range.
How do I really know who is really with an oil company or just contracting with them to do their leases? and do they flip leases without people knowing? I've heard other companies do that alot. It just seems shady and confusing at times to try and sort through whats true and what isnt.
There is a longer thread on this subject on this forum.
In general, this is very commonplace. Many large companies, especially in hot areas, choose to contract a firm of landmen. They do not want it known that they are accumulating leases. Contracting is more common than not in a lot of areas.
In some situations, flipping occurs.
No matter who you lease it to, even a large company, it is not a sure thing that they will be the operator. That company may not end up owning a large share of the minerals. Leases are sold and traded all the time.
You can always ask the representative who they are really working for. Oftentimes, they are not authorized to tell you.
Mr. Anderson is correct in his answer to your question. The company who ends up with your mineral acreage may not eventually drill the well. If a lease is nearing expiration date and the operator who holds the lease cannot drill before the expiration date, this is sometimes when the company looks to sell or trade to another operator who is able drill before the expiration date. All you can do as a mineral owner is make sure you get a good lease and cover all your bases in regards to lease contents. After the lease is signed, it's somewhat out of your hands until a well is drilled or the lease expires.