Division order when lease is almost up

Just received a division order from Newfield Exploration for rights I own in 11-17N-8W.

Have a lease on this that is up next month; leased to Chesapeake. I am trying to figure out now whether to re-lease or to consider selling my rights.

Does anyone know how signing this division order will affect my ability to lease or sell?


My first impression is that your mineral lease may not have a term limit as you believe. I suspect there is a clause that extends the period of the lease once production begins.

I'm fairly certain Mr. Estill is correct. Look at your current lease and look for the words X term of years "or as long thereafter as oil or gas are produced". If you are getting a division order now, it means they found something which they have been producing for months.

Look at the bright side, I would much rather be leased to Newfield than to Chesapeake.

Signing a division order shouldn't affect the sale of your mineral rights. I would still try to determine if the division order was accurate.

Unasked for advise here, I would collect royalty for at least 6 months before I sold, as you are selling all the oil and gas that is in the ground, that will ever be produced. What comes out of one well in 6 months to a year is a very small part and probably wouldn't diminish the value even though it may be significant to you.



Here is some info on well in 11. Looks like they may owe you some interest for late payment.

Signing the division order will get you a nice check! The first check will have about six-more months of production. First sales were in February, so if the Division order was sent after August, you may be eligible for interest payments.

If you have a standard lease, then you will be held by production as stated by the gentlemen below. If you need help in calculating the division order decimal, friend me. The equation is fairly simple.

Thanks for all the good info. I appreciate it--since I am a real newbie at oil and gas leasing.