Lessor, inactive,VS O&G Co not leased but drilling

I am leased with oil company (( #1,)) who is not active on my mineral interest.

There is another oil company (( #2,)) who obviously has obtained leases from interest owners who share my area, since this company ((#2)) is currently drilling on the section and lot where my interest lies.

Should company #2's project produce, will I receive royalties?

Am I considered a "non working interest?" Is Company #1 a "working interest?"

Company #1 informed me that they had no knowledge of Company #2 drilling on their interest. How could this be? What should I do about this?

Thanks to whomever can advise me what I should do, if anything.

Lee Young


The company you leased to probably assigned it to someone else or the spacing of the unit does not include your interest. What is the legal description and who did you lease to and I'll take a look.


Mineral Joe said:


The company you leased to probably assigned it to someone else or the spacing of the unit does not include your interevst. What is the legal description and who did you lease to and I’ll take a look.

I leased with Quicksilver Resources. Gulfport Energy is drilling. I saw the operation recently when I was in Craig,CO.

G.P sent me letter wanting to lease my interests. This had the legal description .

Mineral Joe,

I seem to have lost the remainder of my message to you.

Thank you for your reply. I leased with Quicksilver Resources in February of this year. The legal is: NWNW Section 10 T6N R91-W . In Craig CO.

In July, I received a certified, return receipt, letter from GP offering a lease with three options: two that had different bonus amounts and royalties and one that said if I didn't want eithe,r then I would share in the production costs of 1.5 million.

I contacted QS only to be told that evidently GP didn't know we were already leased with them and to just ignore the letter - which I did. She also seemed surprised that GP was drilling on my mineral interest. She told me she would call me back after speaking to her field agent - she hasn't yet. This entire scenario makes me nervous. ha,ha.

Since that time, I have contacted a couple of government officials from Denver and Moffat County who told me I am a 'non-working' party. Quicksilver is a 'working interest' which means they share in the production costs and I don't. I was also told that whatever royalty interest I have agreed upon in my lease to QS, is the percentage I will receive from this well, should it be productive. The well is named the Elgin Well, 11-01-1.

I hope this will clarify things for you to answer my earlier questions.


The well unit is the N/2 and it’s located in the NWNW . It looks like this well was purposed before you even signed your lease. It’s a vertical well that looks to be targeting the Niobrara but went well below, TD is 8300’. QS was ware of the well, you just didn’t speak with a person with knowledge of what was going on. QS will pay on any production just as you agreed and signed the lease for, no worries. They are drilling on a Samson lease with Farm Credit Bank but states a state lease. It looks like the bank also has minerals in the NWNW

Mineral Joe, Thank you so much for your input. I should have suspected the QS representative didn't know what she was talking about. Not exactly the employee I would want representing MY business.

Re Farm Credit Bank of Wichita:. Yes, they do have a lot of interests around. They are first mineral interest owners..more than likely, surface owners, .way back when...... (for all I know it was conveyed to them from the Indians... haha .... well until the US government took it away from Indians). couldn't resist that comment.

Thanks again, M.Joe, I have visited Court House, researched titles, plus, plus, for years there in Moffat County. Recently, I have found a Map with numerous layers available on the COGGC site. Do you have any other suggestions in areas of obtaining information? I have a few unanswered questions that go back to the early 80"s.

What information are you wanting?

I do not want to take advantage of your kindness to ask - and also your time. This site - rather the members in it - are very generous with their time and information. What are people, such as yourself, (pardon me,) but getting out of doing all this?

Everyone needs help with something once in awhile, I actually have a question on here right now. Some also find a pleasure in helping others when they can. Nothing more than that for me.