I have several acres in Fisher Co Texas. I leased my property recently. The last few days, I have been getting calls from some oil companies wanting to lease about 40 acres. One of the companies told me he wants to lease for 'deep' drilling, and I can take the lease to my lawyer or banker to see that it is legal. My question is, can the 40 acres have a lease with a second lease for the 'deeper' oil/minerals?
Yes, unless the first lease covers all depths. It just depends how the first lease reads. What he might be getting at is that he saw some type of depth severance clause in your original lease. Meaning, after the end of the primary term, the original lessee or assignee could no longer hold it beneath a certain producing depth or stratigraphic equivalent thereof. The lawyer might be a good idea. Not sure why he would tell you to take it to a banker - unless the banker had a working knowledge of oil and gas leases and how depth provisions work.
Thank you Dave. I am real new to this business and appreciate your input!
You're welcome. It's unlikely that they would be calling you if they didn't see an "in" to lease your deep rights. Otherwise, they would be wasting money or face lawsuits. My hunch, from what you wrote, and without having read anything, is that your deep rights might be open because of a particular clause in your original lease.
Feel free to confirm that if someone looks it over, or if it is some other type of scenario that plays out. I can still learn new things as well.