Leasing Terms, Etc.

I just saw there had been posts about lease bonuses in Roger Mills County, OK but the post was closed end of May. I wanted to post that my family leased in Sec 2-24W-15N with Sandridge (who has petitioned and obtained permission to begin drilling new well(s) there) for $2250 and 3/16. I negotiated for them to also lease our interests in 12-24W-15N for the same bonus/percentage. Hard to know, but there is renewed interest in that area. Later, I learned we should have striken the terms that allow for lease to continue so long as still drilling and for us to guarantee and defend the title to the mineral rights. So I will pass on that advice.

What exactly does it mean “and for us to guarantee and defend the title to the mineral rights.” Sorry but I am so trying to figure this all out!

In laymen terms it means that if you warranty your title and there is any title issue then you have to pay an attorney to fix it. Not a good idea to have that clause in your lease. Can be quite expensive!

Is it a good practice to “strike the terms allowing the lease to continue as long as drilling is occurring” from the lease contract? I notice that was in our last lease. So would the option be to renegotiate the lease terms ,if said lease expires before drilling is completed? I am so grateful for sharing your knowledge and experience! I am 84+ and although new tricks are not impossible, legal language can be!! Thank you so much!

It is common practice to leave the as "long as drilling is occurring’ in the lease. I really do want them to finish any well that is started. You can limit the time frame for continuing operations to allow for a well to die and another well to be started. I have seen 90-180 days depending upon the state. I have a commencement of drilling clause in my lease which has very definite language about a rig being capable to drill to depth and turning to the right. Not just “operations”.