Company claiming I'm still leased 28-2S-2W Carter County Oklahoma

Good morning,

This is a big long winded but I have a scenario that I would love some advice on.

I own minerals under and old (2004) 1/8th lease that I purchased in 2013. The current shallow well I received a shut-in payment once in 2014 and nothing since. I have leased the property in 2016 and now while trying to lease again was told it is held by production. I have to get a release which I suspect the old shallow operator will not grant. Best I can tell it did produce once in May 2016 but nothing since and I have received no royalty on this unit since I’ve owned it and only the one shut-in payment way back in 2014.

I’m guessing I will need to get an attorney involved but appreciate any input! I am going to send a release to the old operator in the hopes he may just sign it but I am not holding my breath.

You would get better help if you post this in the state and county where it is located. Also the legal location. We can’t help if we don’t know where it is.

This is in 28-2S-2W Carter County Oklahoma. Thanks

I moved it to Carter Co for you.

The last production in 28 was in May of 2016 from the Lyles Well 2 by Bullard oil Company LLC. Ask the new leasing agent why they think you are held by production because if you have not had a shut in payment in two years, you probably are not. Look at the old lease and see if it has any clause regarding shut in time frame.
Current leases are at 3/16ths and 1/5th .

Yes unfortunately I have that same info but they (continental) is saying I need to get a release below 2,000 feet. The old operator did grant 2 releases back in 2014 but from my research it appears he got 6nma for his trouble which i’m unwilling to do. The old lease is a standard one page lease with no good shut-in clause but again my opinion is that even if there was a clause the fact he hasn’t paid one in 5 years would make me open to lease.

Thank you so much for the input!

The lease should have died under its own terms. No production, no lease. No drilling, no lease. No shut in payments, no lease. None of the holding clauses apply. Other companies other than Continental are leasing.

I agree completely. Now getting Continental to agree is the hard part.

Ask the landman if he/she is a CPL. Ask them why they think you are still held if there is no production and no shut in payments for over two years. Ask for the book and page of the lease that says so. Todco Properties, Revolution Land LLC and Osage Oil & Gas are also leasing in 28 besides Continental. Revolution has filed 1/5th leases.