I have a lease where there is a producing well and just received an offer to lease the same Section but only the portion below where the current producer is working. Is this a good idea or are there any issues I should be aware of?
Cindy
If the producing well does not hold the deeper rights through the existing lease, it is a very good idea as you will get leasing bonus money and hopefully more recurring income from additional production. If possible, it seems like it would be advisable to get an attorney to review both the proposed and existing leases, especially for any conflicts with each other.
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Agree with AJ. I also make sure that the new lease quotes the date and portion of the old lease that is relevant and the depth of the reservoir perforations of the well that is holding the lease.
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Agreed with the above. Great advice. One additional consideration. Having the ability to gather many mineral acres from extended family, I have been able to get far greater lease payments etc from first offers. CMixon above might consider contacting the Production Company paying on the well in that section and bargain with them to see if they want to lease those deeper formations. It’s cat and mouse BUT it is just like buying a used car. The price and terms of mineral acres is give and take, and having competition is a great bargaing tool. Mrs. Barnes has writtn that the lease extentions past three years is to be avoided and I have been successful at getting leases written for just two years if a landsman has only a few acres left to lease. Mineral Acre Owners will get all kinds of “We Can’t Do This and That.” My experience is, of course they can, they just don’t want to. 
User162 has good advice. I was told by a contract landman that Continental will only give higher bonuses in their Midland county leasing if you are over 10 NMA, so banding together with other owners would 1) make it easier for them and 2) give you more bargaining rights.
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