# Can I lease a property that already has a well on it?

**URL:** https://www.mineralrightsforum.com/t/can-i-lease-a-property-that-already-has-a-well-on-it/21232
**Category:** Reeves County, TX
**Created:** [June 4, 2012, 5:40pm UTC](https://www.mineralrightsforum.com/t/can-i-lease-a-property-that-already-has-a-well-on-it/21232 "2012-06-04T17:40:00Z")
**Posts on this page:** 5
**Page:** 1

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### Author: ![Laura\_Wendt\_Stark](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/l/ecd19e/32.png) [@Laura\_Wendt\_Stark](https://www.mineralrightsforum.com/u/Laura_Wendt_Stark)
#### Post date: [June 4, 2012, 5:40pm UTC](https://www.mineralrightsforum.com/t/can-i-lease-a-property-that-already-has-a-well-on-it/21232/1 "2012-06-04T17:40:00Z")

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I own 130 mineral acres and I have had a producing gas well on it for some time. I was contacted by a company who wanted to lease this very same property for oil. Can I lease it out since there is a well on it already?

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### Author: ![garland\_tyler](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/g/9fc348/32.png) [@garland\_tyler](https://www.mineralrightsforum.com/u/garland_tyler)
#### Post date: [June 4, 2012, 6:07pm UTC](https://www.mineralrightsforum.com/t/can-i-lease-a-property-that-already-has-a-well-on-it/21232/2 "2012-06-04T18:07:17Z")

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I have property that has a producing gas well. The lease was only to a depth of 5500’. Another company leased the rights under the first lease.

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### Author: ![Ben\_Elmore](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/ben_elmore/32/4071_2.png) [@Ben\_Elmore](https://www.mineralrightsforum.com/u/Ben_Elmore)
#### Post date: [June 4, 2012, 6:20pm UTC](https://www.mineralrightsforum.com/t/can-i-lease-a-property-that-already-has-a-well-on-it/21232/3 "2012-06-04T18:20:11Z")

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Sure, but to have a valid lease (other than a top lease) then the lease under which the gas well was drilled must have terminated.

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### Author: ![M\_A\_Smith](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_a_smith/32/4708_2.png) [@M\_A\_Smith](https://www.mineralrightsforum.com/u/M_A_Smith)
#### Post date: [June 4, 2012, 6:36pm UTC](https://www.mineralrightsforum.com/t/can-i-lease-a-property-that-already-has-a-well-on-it/21232/4 "2012-06-04T18:36:39Z")

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You have to look at the lease you signed originally and find out if you have a Pugh Clause (or equivalent). It is very, very important to have such language in a lease.

With a Pugh Clause, a producing well can “hold” only a designated amount of surface area. Oil wells generally “hold” fewer acres than gas wells. Horizontal wells “hold” more than vertical.

There may also be a relinquishment below the producing horizon (frequently 100 feet below the producing depth). In this case all the acres are available to be re-leased for deeper drilling.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 3:42am UTC](https://www.mineralrightsforum.com/t/can-i-lease-a-property-that-already-has-a-well-on-it/21232/5 "2018-08-15T03:42:01Z")

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