I recently inherited interest in Section 21, Township 4N, Range 7W in Grady County. There is one producing well that I receive a check from now. My question is can I lease this or does the current production hold this property as long as the well is producing? Apparently it was drilled around 1980. Any info would be greatly appreciated.
The Burnett 1-21 with Chaparral Energy is on 640 acre spacing so your interest in the SE 1/4, is it not, would be held by production unless the lease had a depth clause which in the 80s was rare. I can’t check that far back online.
It would be wise to go to Grady County, if you do not actually have the old lease in hand and research the index book for 4N & 7W and go back to that time frame area. Then take a picture of the lease or at least look at it, to see if a depth clause was included. If not included, you would only be subject to that portion of your land that is in that Tract that was drilled. If you have some outside interest of the spacing, then those rights are eligible for releasing. Pictures are good to have in case you want to show them to someone of experience along with your actual deed that was transferred to you denoting your actual legals with deeds.
I have a copy of the lease. It shows a depth clause of 10,700 ft. Does that mean anything below that depth is not covered under the lease?
That sounds like it. What is the Section, Township, and Range and I will see if I can look it up. Is the lease in your name?
It is in Sec 21, Township 4N, Range 7W. It is under Jerry Pilgrim.
I have not been able to find it so far. I can only go back to 1992 online. Was it dated before that?
Yes. It is from 1978.
I would be glad to look at it if you want to fax or email me a copy.