I recently discovered my lease was sold to another O&G co. Should I know which one? Lease expires in a couple of months. Interested O&G co’s, ask me who I have current lease with. I say Samson, but after hearing they sold it, I hesitate saying this, for the reason-I should know shouldn’t I? I have tried to contact someone who is employed with them. But they told me nothing! How can I find out? I am searching for another contact number for Samson Resources
Mr. Young:
First of all, if you are leased, then the company you leased to can either elect to utilize the lease or sell to another company. You don't have control over that scenerio. When the lease expires, no well on property of course, then you can select whom you enter into another lease agreement with, which should be a company you think will drill on you. You never stated the State where you have these minerals so I have no idea who is leasing in your area. I beleive Samson's contact number is (918) 591-1791 which is their Tulsa, OK. office. They also have offices in Texas and Colorado. From what you have said, I would allow the lease to expire and find a drilling company in your area in order to negotiate a lease. The main thing is to be sure and shop around plus know the terms of the lease.
Mr Mallory, Thank you for your information. I leased w/ Samson - they sold lease. (at least I heard this through the grapevine) is it important for me to know who our lease is with now? Or does it matter? Our lease is 3 years with no 2 year option. I will contact S. at the number you provided. Property is in T6N R91W in Moffat County Colorado. I have leased mineral rights three times. But never had Landmen knocking my door down. By the way, it is Ms. Young
charles s mallory said:
Mr. Young:
First of all, if you are leased, then the company you leased to can either elect to utilize the lease or sell to another company. You don't have control over that scenerio. When the lease expires, no well on property of course, then you can select whom you enter into another lease agreement with, which should be a company you think will drill on you. You never stated the State where you have these minerals so I have no idea who is leasing in your area. I beleive Samson's contact number is (918) 591-1791 which is their Tulsa, OK. office. They also have offices in Texas and Colorado. From what you have said, I would allow the lease to expire and find a drilling company in your area in order to negotiate a lease. The main thing is to be sure and shop around plus know the terms of the lease.
Mr. Young:
Sounds like your lease is about to expire so I would start the process of locating a new leasee. Again, do your homework and know what the going $/bonus acre and royalty % currently is before signing a new lease. I am not familiar with Colorado areas but you could contact other local mineral owners to get an idea about these current rates. Good luck!!
Lee Young said:
Mr Mallory, Thank you for your information. I leased w/ Samson - they sold lease. (at least I heard this through the grapevine) is it important for me to know who our lease is with now? Or does it matter? Our lease is 3 years with no 2 year option. I will contact S. at the number you provided. Property is in T6N R91W in Moffat County Colorado. I have leased mineral rights three times. But never had Landmen knocking my door down. By the way, it is Ms. Young
charles s mallory said:Mr. Young:
First of all, if you are leased, then the company you leased to can either elect to utilize the lease or sell to another company. You don't have control over that scenerio. When the lease expires, no well on property of course, then you can select whom you enter into another lease agreement with, which should be a company you think will drill on you. You never stated the State where you have these minerals so I have no idea who is leasing in your area. I beleive Samson's contact number is (918) 591-1791 begin_of_the_skype_highlighting (918) 591-1791 end_of_the_skype_highlighting which is their Tulsa, OK. office. They also have offices in Texas and Colorado. From what you have said, I would allow the lease to expire and find a drilling company in your area in order to negotiate a lease. The main thing is to be sure and shop around plus know the terms of the lease.
Ms. Young: You point out an issue that is often overlooked in the preparing a mineral lease agreement. It is wise to have a provision in the mineral lease that specifies if the lease is assigned that the mineral owners are to be notified, in writing, of the entity the lease was sold to in part or whole. I believe this is fairly common language to have in a lease today. I had this happen where 60% of the existing mineral lease was sold to another entity. We were notified, in writing, naming the new Operator. Had I not had an O&G ATTY review and modify the lease provisions and include this provision, I would have never thought about it. Good policy.
Mr. Igau:
This is an excellent point you make about notification to the mineral owner in the event of a transfer to another party. None of my leases has this provision but I will take of this and add it to my next lease agreement.
Mike Igau said:
Ms. Young: You point out an issue that is often overlooked in the preparing a mineral lease agreement. It is wise to have a provision in the mineral lease that specifies if the lease is assigned that the mineral owners are to be notified, in writing, of the entity the lease was sold to in part or whole. I believe this is fairly common language to have in a lease today. I had this happen where 60% of the existing mineral lease was sold to another entity. We were notified, in writing, naming the new Operator. Had I not had an O&G ATTY review and modify the lease provisions and include this provision, I would have never thought about it. Good policy.
Mr Mallory, thank you once again for your reply. I actually reached someone at Samson. They informed me that they had sold their interests in the area - Moffat County T6 R91W - to Gulfport. I informed him that Gulfport didn’t have record of that. (per the Landman I am negotiating with-who said he asked his project manager to check it out) So Samson’sadvice is just wait out the lease expiration date and sign highest offer. Which is what you advised, and I thought it was the only thing to do.
charles s mallory said:
Mr. Young:
Sounds like your lease is about to expire so I would start the process of locating a new leasee. Again, do your homework and know what the going $/bonus acre and royalty % currently is before signing a new lease. I am not familiar with Colorado areas but you could contact other local mineral owners to get an idea about these current rates. Good luck!!
Lee Young said:Mr Mallory, Thank you for your information. I leased w/ Samson - they sold lease. (at least I heard this through the grapevine) is it important for me to know who our lease is with now? Or does it matter? Our lease is 3 years with no 2 year option. I will contact S. at the number you provided. Property is in T6N R91W in Moffat County Colorado. I have leased mineral rights three times. But never had Landmen knocking my door down. By the way, it is Ms. Young
charles s mallory said:Mr. Young:
First of all, if you are leased, then the company you leased to can either elect to utilize the lease or sell to another company. You don't have control over that scenerio. When the lease expires, no well on property of course, then you can select whom you enter into another lease agreement with, which should be a company you think will drill on you. You never stated the State where you have these minerals so I have no idea who is leasing in your area. I beleive Samson's contact number is (918) 591-1791 begin_of_the_skype_highlighting (918) 591-1791 end_of_the_skype_highlighting which is their Tulsa, OK. office. They also have offices in Texas and Colorado. From what you have said, I would allow the lease to expire and find a drilling company in your area in order to negotiate a lease. The main thing is to be sure and shop around plus know the terms of the lease.
Mr. Young:
Good luck in your leasing and again, just remember to shop around and do your homework before signing another lease.
Lee Young said:
Mr Mallory, thank you once again for your reply. I actually reached someone at Samson. They informed me that they had sold their interests in the area - Moffat County T6 R91W - to Gulfport. I informed him that Gulfport didn't have record of that. (per the Landman I am negotiating with-who said he asked his project manager to check it out) So Samson'sadvice is just wait out the lease expiration date and sign highest offer. Which is what you advised, and I thought it was the only thing to do.
charles s mallory said:Mr. Young:
Sounds like your lease is about to expire so I would start the process of locating a new leasee. Again, do your homework and know what the going $/bonus acre and royalty % currently is before signing a new lease. I am not familiar with Colorado areas but you could contact other local mineral owners to get an idea about these current rates. Good luck!!
Lee Young said:Mr Mallory, Thank you for your information. I leased w/ Samson - they sold lease. (at least I heard this through the grapevine) is it important for me to know who our lease is with now? Or does it matter? Our lease is 3 years with no 2 year option. I will contact S. at the number you provided. Property is in T6N R91W in Moffat County Colorado. I have leased mineral rights three times. But never had Landmen knocking my door down. By the way, it is Ms. Young
charles s mallory said:Mr. Young:
First of all, if you are leased, then the company you leased to can either elect to utilize the lease or sell to another company. You don't have control over that scenerio. When the lease expires, no well on property of course, then you can select whom you enter into another lease agreement with, which should be a company you think will drill on you. You never stated the State where you have these minerals so I have no idea who is leasing in your area. I beleive Samson's contact number is (918) 591-1791 begin_of_the_skype_highlighting (918) 591-1791 end_of_the_skype_highlighting which is their Tulsa, OK. office. They also have offices in Texas and Colorado. From what you have said, I would allow the lease to expire and find a drilling company in your area in order to negotiate a lease. The main thing is to be sure and shop around plus know the terms of the lease.
Thank you Mr. Igau, I hope this reply follows your question. I must say this website, as great as it is, needs some work on the mechanics. For instance, why are the replies repeated? Oh well, on to the reply I have: The idea that a lessee could sell off a portion of a lessor’s mineral rights is strange. It doesn’t seem right to me. I assume that means that when the lease expires, then the lessor could only lease the parts remaining. Boy it could have been bad if the lessor didn’t know about the sale, and then leased the entire mineral acreage to another company. This could get complicated. Another important reason for the lessor to be informed of lessee’s actions.
charles s mallory said:
Mr. Igau:
This is an excellent point you make about notification to the mineral owner in the event of a transfer to another party. None of my leases has this provision but I will take of this and add it to my next lease agreement.
Mike Igau said:Ms. Young: You point out an issue that is often overlooked in the preparing a mineral lease agreement. It is wise to have a provision in the mineral lease that specifies if the lease is assigned that the mineral owners are to be notified, in writing, of the entity the lease was sold to in part or whole. I believe this is fairly common language to have in a lease today. I had this happen where 60% of the existing mineral lease was sold to another entity. We were notified, in writing, naming the new Operator. Had I not had an O&G ATTY review and modify the lease provisions and include this provision, I would have never thought about it. Good policy.
Ms. Young. I think you are misunderstanding. The lessee is only assigning part or all of the lease they obtained from the lessor. If the lease ends with no drilling/production, you are free to lease the whole thing again. They aren’t selling your mineral rights. They are sub-leasing them. I hope this clarifies for you. RWK
Just advise them who you leased to. Leases change hands all the time. If they are interested they have access to that information.
Dear Ms. Young,
You have the ability to delete as much or as little as the auto-quoted replies as you wish. We all are guilty of not using this feature to help the readers correlate the reply to the question.
Lee Young said:
For instance, why are the replies repeated?
Buddy: You might be able to elaborate on this issue and confusion Ms. Young is having. We need to differentiate between “mineral rights” and a “mineral lease” I hear folks talk about their mineral rights or the buying and selling of mineral rights. Another cautionary area of managing your minerals. I receive offers all the time to purchase my mineral rights, typically to a producing well, usually for pennies on the dollar of value. These entities are wanting to purchase your “mineral rights” and existing production. “Mineral Leasing”: Obviously this is where, typically an Oil/Gas Company or “Operator” wants to lease your “mineral rights” for a specified time frame to drill an oil or gas well. This includes the bonus payment and royalty interest rate and other provisions such as pooling, pugh clauses, as well as assignment notification to the lessor. As Mr. Kennedy correctly stated, even if your mineral lease is assigned, in part or whole, the original lease terms prevail. If no well is drilled and your mineral lease expires, you are free to lease your mineral property to another interested Operator.
Mike Igau
Thanks for the clarification. Ms Young
Mike Igau said:
Buddy: You might be able to elaborate on this issue and confusion Ms. Young is having. We need to differentiate between "mineral rights" and a "mineral lease" I hear folks talk about their mineral rights or the buying and selling of mineral rights. Another cautionary area of managing your minerals. I receive offers all the time to purchase my mineral rights, typically to a producing well, usually for pennies on the dollar of value. These entities are wanting to purchase your "mineral rights" and existing production. "Mineral Leasing": Obviously this is where, typically an Oil/Gas Company or "Operator" wants to lease your "mineral rights" for a specified time frame to drill an oil or gas well. This includes the bonus payment and royalty interest rate and other provisions such as pooling, pugh clauses, as well as assignment notification to the lessor. As Mr. Kennedy correctly stated, even if your mineral lease is assigned, in part or whole, the original lease terms prevail. If no well is drilled and your mineral lease expires, you are free to lease your mineral property to another interested Operator.
Dear Mike,
I will hit the high points.
Mineral - definition depends on the state. Some states simply define minerals as "those things typically thought of as minerals." Some states will have the definition of a mineral depending on what era the transfer occurred and some will define mineral by statute or a combination of all.
Mineral Acre - The full mineral ownership in one acre of land.
Royalty Acre - The full right to 1/8th of production under one acre of land. Therefore there are 8 royalty acres to one mineral acre. In many venues, a term in antiquity.
Mineral Estate - The ownership rights in minerals. Not the minerals themselves. Minerals are real property. Mineral Estate is a degree of ownership and rights. For example, (1) the right to lease, (2) the right to receive bonus, (3) the right to receive delay rentals, (4) the right of ingress and egress, and (5) the right to a cost free share of production. These are all elements of the Mineral Estate.
Mineral Lease - An agreement where you transfer your mineral estate to another, receiving typically bonus, delay rentals and a cost free share of production. There are typically two terms in an oil and gas lease - the primary term, stated in years on the face of the lease and the secondary term, which is triggered with the clause that many times reads, "and as long thereafter as oil and gas are produced in paying quantities." The latter clause is also referred to as the habendum clause. When the agreement terminates, the mineral estate reverts back to the Lessor. If the agreement terminates as to some lands and not other lands described on the lease, only the rights under the lands that terminated are available to lease again.
All of the above are much simplified explanations.
Mike Igau said:
Buddy: You might be able to elaborate on this issue and confusion Ms. Young is having. We need to differentiate between "mineral rights" and a "mineral lease"
Buddy, I am happy to see the terms defined so well, that even a lay person could understand. This information will be copied and placed in my ever-increasing 'mineral lease and misc. info' file.
Also a big thank you to Mike Igau, who saw the need to have some terms defined and contacted you, Buddy.
I am sure there will be a lot of members who will benefit from your help.
Lee Young
Oh, thank you.
r w kennedy said:
Ms. Young. I think you are misunderstanding. The lessee is only assigning part or all of the lease they obtained from the lessor. If the lease ends with no drilling/production, you are free to lease the whole thing again. They aren't selling your mineral rights. They are sub-leasing them. I hope this clarifies for you. RWK
I, too, leased with Samson on 6N 91W back in May 2010 - and one lease included small acres on the Allen well - which had been put in a couple of years earlier - without a lease from me, and I was “forced pooled”. I have yet to receive a check from Samson or Gulfport. Samson will not answer my emails or phone calls and Gulfport claims they have not received “assigned” leases from Samson. Interestingly, Gulfport is now wanting to lease more of my mineral west of this area. I am strongly considering simply canceling the contract and going to the Colo. Oil and Gas Commission.
donn mahoney said:
I, too, leased with Samson on 6N 91W back in May 2010 - and one lease included small acres on the Allen well - which had been put in a couple of years earlier - without a lease from me, and I was "forced pooled". I have yet to receive a check from Samson or Gulfport. Samson will not answer my emails or phone calls and Gulfport claims they have not received "assigned" leases from Samson. Interestingly, Gulfport is now wanting to lease more of my mineral west of this area. I am strongly considering simply canceling the contract and going to the Colo. Oil and Gas Commission.