I own mineral rights in Section 10, Block C-8 in Midland, Texas. Signed a Contract almost 2 yrs ago with said company. Are they drilling there or am just getting screwed, because I can't get any answers from anyone
Thanks
Kim Tudor Krahenbill
Kimberly:
You might want to be a little more specific on your mineral area description. How long was your lease for? Does your lease contain an extension clause? When an operator enters into a lease agreement with a mineral owner, they have the amount of time designated on the lease to make any decisions on whether or not to drill. For example, if your lease is for 3 years, they may opt to start drilling operations during the last month of the lease prior to expiration. There could be several factors involved such as availability of rigs or just monitoring the "new" drills in the immediate area. Of course, they may decide not to drill during the lease period which allows you to negotiate a new lease at the expiration of the old lease.
I totally understand what saying, but honestly, I live in Virginia Beach, VA, the mineral rights are a Tudor inheritance, I guess I need to research this more. I have tried but have come with little results. If you know a site that I have not found, would you please let me know?
Thank You
Kimberly
Kimberly:
You will find some information on the Railroad Commission of Texas website. This website can be hard to navigate but there are phone contacts listed on the website that can answer your questions. Hope this helps.
I am confused as to why your are saying "am I just getting screwed." Even if it is not being drilled, you are not being screwed. You will just be able to lease again when the current lease expires. I have leased many people over the years who would prefer to get the bonus money every three years. Often times a well is drilled and the production is enough to hold the lease but not enough to be very profitable for the mineral owner. These leases can be held for many years like that.