While talking to a friend this morning he mentioned potash and what a low yield moneywise it is. When I got off the phone with him, I suddenly realized there was something I would like very much to know.
If you lease an oil and gas lease, can you lease the same acreage for a gold lease, another for silver, etc. Anyone have an answer for me? I hope I made myself clear.
Wes Luke
Wes:
I can briefly inform you on the potash area of your question. In ND under potash lease applications, it is applicable only for tracts not already leased for sub-surface minerals. Go to the NDIC website to pull up the State Auction portion under Land Management. Go to the Potash portion and read the lease applications. I would think the same would apply to gold, silver, etc. Hope this helps.
Charles,
If I understand you correctly, only one sub-surface lease can be issued on the same property at the same time. Is that correct? If so, well, shucks! : )))
Wes:
That's the way I interpret this rule but keep in mind, this is in ND so I'm not sure about other States.
Wes Luke said:
Charles,
If I understand you correctly, only one sub-surface lease can be issued on the same property at the same time. Is that correct? If so, well, shucks! : )))
A lease can written anyway in which the two parties can agree to. I don't know about potash potential, but it is not uncommon for a "Coal" lease to exclude oil & gas rights. Or, an "Oil & Gas" lease will often specifically exclude coal when the acreage being leased is in an area where both are present.
In the end, "language matters". Some standard lease forms are very broad, other forms are more limited. So always read your lease language carefully. Or hire someone to do it for you so that you fully understand the contract you're signing.
I was looking at the, North Dakota Board of University and School Lands Potash Mining Lease and Right of First Refusal to Pore Space. It was clearly designed to provide for multiple lessees, leasing different minerals, with each having exclusive right to the mineral/s in their particular lease, and no others.
Thanks Charles. I don't know why this popped into my head. Just because, I think, I have mineral rights in CO and there could very easily be gold or silver in "them thar hills" : ) How neat would that be if you leased a property for oil to one company, silver to another and gold to another. Talk about a "triple play". lol
Wes
That's extremely interesting, Robert. I have to wonder if anyone has multiple leases for different minerals. Like I said to Charles, what a "triple play" that would be. As always, your research is much appreciated.
Wes
Eastern, actually potash was never considered by me as a good moneymaker. Now, the gold and silver, along with oil could be a huge paycheck each month. All that is required is finding gold and silver miners willing to mine on your mineral sites. It could pay as much as $2-3 hundred dollars a month. Wow! lol I hope your dreams are good ones.
Wes Luke
Wes:
I have been reading further in regards to leasing various minerals and it looks like I misread the clause and I tend to agree with Mr. Kennedy's post. Good luck on your quest for multiple types of mineral leasing.
Thanks Charles. I wasn't really on a quest. I merely was curious. I guess I was daydreaming more than anything. Have a great day.
Wes