I inherited some mineral rights and have been getting monthly royalty checks, I recently found out the royalty rate is 12%, the date of lease is Oct. 1950. There has been up to 4 oil wells that produced in the past, the past few years there's still one well producing consistently and I'm not sure if there is a 2nd well--I found another lease# on the monthly paperwork I get--that one has 16% Royalty Rate with Date of Lease June 1965.
Is there any way to redo/renegiotiate these 2 oil leases into the recent rates?
Miss SC:
From what you have stated, I would say that the terms of each lease stands on its own and is not eligible for changes unless there is a loophole in the leases which could be utilized. You didn't state where these minerals are located but if they exists in a shale play area, new wells could be drilled and then new leases for these new wells could be negotiated.
Charles,
Thanks for your reply, I think my greatgrandparents signed the original leases back in 1950 and 1965--there are no Expiration Date> instead it has IP. The location is: Township 29North, 50East, Section 12, Roosevelt county, MT, this is an oil field north of Poplar, MT--it's been there for alot of years.
I did talk to the landman(different company) a month ago, they offered a new oil lease for a different land location in Roosevelt County, she told me the old wells that were north of Poplar were going to be "reworked" by those oil companies and updated to where production would go up. The only thing I've noticed is that the oil company changes every few years on the old 1950/1965 leasse but the rate never does. It just puzzles me alot.
charles s mallory said:
Miss SC:
From what you have stated, I would say that the terms of each lease stands on its own and is not eligible for changes unless there is a loophole in the leases which could be utilized. You didn't state where these minerals are located but if they exists in a shale play area, new wells could be drilled and then new leases for these new wells could be negotiated.
Miss SC:
The rate in the original lease will be in effect at present. I have minerals in Roosevelt County, T30N;R59E and we are currently leased to EOG Resources. This area has Bakken potential and I think additional horizontal drilling will increase later this year and next depending on the success of drills in this county. Currently, all attention has been on the ND area but it should eventually move to the Montana area. I think all the areas around us have been temp. spaced. Good luck on your end!!
Miss SC said:
Charles,
Thanks for your reply, I think my greatgrandparents signed the original leases back in 1950 and 1965--there are no Expiration Date> instead it has IP. The location is: Township 29North, 50East, Section 12, Roosevelt county, MT, this is an oil field north of Poplar, MT--it's been there for alot of years.
I did talk to the landman(different company) a month ago, they offered a new oil lease for a different land location in Roosevelt County, she told me the old wells that were north of Poplar were going to be "reworked" by those oil companies and updated to where production would go up. The only thing I've noticed is that the oil company changes every few years on the old 1950/1965 leasse but the rate never does. It just puzzles me alot.
charles s mallory said:
Miss SC:
From what you have stated, I would say that the terms of each lease stands on its own and is not eligible for changes unless there is a loophole in the leases which could be utilized. You didn't state where these minerals are located but if they exists in a shale play area, new wells could be drilled and then new leases for these new wells could be negotiated.
Miss SC,
Carefully read the lease(s) under "Term" and look for the wording similar to, "or for so long thereafter as the well produces in paying quantities" If you find the wording, send it to me and I may be able to tell you how to put some added info together that will certainly get the Lessee's attention on negotiating a new lease.