Caddo County Leases Not Recorded

[Griffin]

My cousins and I own mineral rights in Caddo County, OK. None of us knows much about the world of minerals, we’re definitely in the newbie category. Five cousins signed leases for 3 years for their interests in December 2021, and four of us signed leases for 3 years with the same company in December 2022. However, I was surprised to find that none of the leases have been filed with the Caddo County Clerk. Even though we’re newbies, a few of us are trying to learn, and I have figured out how to search the county records. I did find a couple of recorded leases for this company, but none of those pertained to any of our leases.

When I contacted the landman, he said the company delayed the lease filing because they wanted to file them at the same time they filed pooling applications with the Oklahoma Corporation Commission. He says they are now on a week-to-week basis as to when the leases will be filed.

I have so many questions. Is this practice allowed? If so, what does this strategy accomplish for the leasing company? Does the filing date with the county affect the expiration date of the lease in any way, assuming wells haven’t been drilled yet, or is the deciding factor the date the lease was signed and notarized??

[M_Barnes]

Yes, this happens. It does not affect the expiration date of the lease which is stated at the top of the lease. Filing date does not change the expiration date.

[Richard_Winblad]

You should be fine provided you were paid a lease bonus. Filing generally protects the company. With that being said, you might be approached by companies unaware that another company is holding the leases. So be careful not to sign additional leases covering the same legal descriptions.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

[Griffin]

Thank you, that makes us feel better.

[Griffin]

Thank you Richard, good advice. I should have noted on my post that we all received the lease bonuses with no issues, so we’re covered in that regard.