- There has been no renegotiation on this lease for 19 years. Two drillers paid out small amounts yearly to my mom, through consolidated checks. There was no rental fee paid. 2011 there was a small check and in 2013 there was another even smaller check. Since then nothing was received and no communication. We inherited this and a month later we have received two offers to lease. One is from the original company. The other from a new driller. So we assume the lease has lapsed, since one of the original drillers is offering us a lease.
- * My question: There appears to be a lot of equipment on our land near the two wells that have been producing. If we go with the new company, which is giving us a better offer, will all this equipment be dragged away and the new driller come on? Would this possibly slow down the new drilling?
Probably the best thing to do is see who ends up being the operator. It will be obvious through the process of several months. If you are the surface owner, then go ahead and call the original folks and ask them what their intentions are and are they going to clean up the area.
It probably will not slow down the process as the new wells will most likely be horizontal wells and have different requirements.
On the new leases, be very sure that you have no post production charges. Read over the last few months of comments hear to get in the swing of what you need, who is leasing, etc. The leasing agent does not necessarily represent the final operator.
Some folks in Caddo have needed a release of lease from the old operator to clear their title. Friend me if you need the form.
To check this properly, you need to provide your Township and Range. There are dozens of section 27 in Caddo County.
However, if you are getting two lease offers, it's safe to say your lease has lapsed. Any new drilling will likely have absolutely nothing to do with the old well or equipment on the lease, particularly if it is no longer producing.
Keep in mind that the company you lease with will not necessarily be doing the drilling. Typically, one of the companies with a majority of the leasing interest in the section will become the operator, but the other companies with participate with their share of the holdings.
That's very helpful. Thank you.