Hi There is an abandoned lease in west Texas that I would like to take over operations. I understand the what is needed for rrc. I have researched all the mineral estate and have found about a dozen owners. Do I have to have a signed lease from all owners before operations can resume? The old leases have terminated. Is it possible to begin producing with any minority of signed leases.
Js1579: welcome to the Mineral Rights Forum!
Yes, there are some situations in which you do not have to have every mineral owner leased before you drill. Sorry, but this is not a question with an easy or simple answer. Having a lease signed with every mineral owner is always going to be the best way to go. If that is not possible, you will need to contact an oil and gas attorney to look at the ownership, how the RRC rules apply and to look at how current Texas court cases on this subject apply, in order to determine if you can drill without all owners leased, and if so, what percentage must be leased.
What is the anticipated production and what is the lease burden? I have seen a deal killed in Lee County with a 1% open interest (burden was 25%) but a well drilled in Hidalgo County with a 6 & 1/4 open interest (burden was 16.67%). The answer is how much can you carry!
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