HBP - Held by Production Lease


The following is something I posted in June of 2017:

“We have received numerous offers to purchase mineral rights in Grady County section 34 T10N R6W, and section 3 T9N R6W. We have less than 2 net acres in section 3, but have 10 acres in section 34. This is owned by my parents, and they have expressed an interest in selling some or all of it. Common sources are the Mississippian and Woodford. Not sure of the value. Can someone give some guidance on this? Thanks”

Sorry it has been so long to readdress this issue, but I have only been able to acquire a copy of the lease on mineral rights in section 3 T9N R6W owned by my Dad, but have been unable to acquire a copy of the lease for my Mothers 10 acres in section 34 T10N R6W.

Linn Energy continues to pay royalties to my mother, and pointed me to the company they said owned the lease (Gungoll Exploration). Gungoll told me that the original lease from 1974 was still in effect by the HBP clause, but that they sold it to 89"r Energy. I contacted 89"r Energy and they claimed Gungoll never sold that lease to them. We believe that the original lease from 1974 could be challenged because since 1974 there have been a number of years when my Mom did not receive any royalties. We are starting to think that this whole affair does not pass the smell test.

Is there anyone out there who we can hire to tract down a signed copy of the lease that is in effect (current assignment of lease)? And, is there any way to verify if the lease is still in affect based on the HBP clause? I believe they are now ready to sell their mineral rights, but not before we determine whether or not the lease on the 10 acres is still in affect. Can anyone help!


This is the site where the Grady documents can be found. They may not go back to 1974, but the lease assignments might show up if recent. You may have to hire a landman to find out.
If your mom truly does have the rights, she should be getting paid on the Copeland horizontal wells if they are finished. The first one spud in June 2017, so division orders should be out any day. Did she get any of the pre-spud paperwork?