One drilling company (for sake of clarification - call it B Company) sent me a certified letter for me to choose between leasing or assigning my mineral interest for a cash consideration; 2) or lease for a cash per acre retaining a royalty; or 3) participate in drilling costs.
I have the mineral rights leased for 3 years with an option- with drilling company. 'A Company'. I contacted them, asked them what I should do about the letter and was told to ignore it since the company doing the drilling probably didn't know my mineral interests were currently leased with them.
She also informed me that should the well produce, that Company 'B' is drilling, that my royalties would be the same amount/percentage as with company 'A' I have leased to. She was NOT aware of Company 'B's drilling.
This situation, she described as 'a non-cost bearing interest' for me. However, my current Lessee Company A's would be 'cost bearing.' I then asked, "even if they were not aware of Company B's drilling?
(which has resulted in a producing well.)
I have asked a couple of people in the Colorado County State Land Board and was told to apply #18 on my current lease. Which in short says if I chose to lease with the Company that is drilling that lease would be subordinate to lease I have with Company A.
I'm sure this situation is pretty common - but not to me. I would really appreciate knowing what I should do about this - if anything.