I have the executive leasing rights for 390 acres in Archer County, Texas. The shallow and deep lease ran out and I am in the process of looking over a new lease. The former lease for the shallow and deep were from different producers. The new producer wants to lease all acreage for deep and shallow. There is production ongoing and I need to know if I can add the continuous clause to the new lease?
I meant a continuous drilling clause
Joanna, if it's 390 net mineral acres, you should have considerable clout and could decide what is a deal breaker for you.
thank you.. I will look it over..
r w kennedy said:
Joanna, if it's 390 net mineral acres, you should have considerable clout and could decide what is a deal breaker for you.
Joanna,
If "There is production ongoing" on your land, the leases may not have run out and your land is held by production (HBP) Make certain you know exactly what you have available for lease to a third party before committing.
As far as continuous drilling goes, with 390 acres, you may be better off to allow a lessee to earn acreage by drilling by certain dates that are comfortable for both parties. That leaves little room for doubt as to acreage that is or isn't controlled by the lessee based on specific not vague guidelines. I think you are in a good area to do that as well.
Thank you, Gary.. I am in the process of finding out what is and what isn't on this land. I inherited it and others a few years ago and this is so new to me and my sister. I thought the last lease holder had drilled, but this new landman says no and that is why the lease was available. I have been receiving royalties from the other guy but now I think it may be from other properties. I think there are some old wells that he wants to redrill. Are you talking about something other than continuous drilling? Can you explain it to me before I take it to a lawyer so I sound like I know what I'm talking about? I just don't see how people do all this without getting "taken". I don't live in Archer County, I live in Austin.
Gary L. Hutchinson said:
Joanna,
If "There is production ongoing" on your land, the leases may not have run out and your land is held by production (HBP) Make certain you know exactly what you have available for lease to a third party before committing.
As far as continuous drilling goes, with 390 acres, you may be better off to allow a lessee to earn acreage by drilling by certain dates that are comfortable for both parties. That leaves little room for doubt as to acreage that is or isn't controlled by the lessee based on specific not vague guidelines. I think you are in a good area to do that as well.
Gary L Hutchinson
Minerals Management
If the deep and shallow rights are available for lease, it is unlikely your land is held by production. Usually, just the deep rights are available, if at all.
Yes, you can add a continuous development clause to your lease.