Protection lease?

What is a protection lease and why would a company want to have one signed?

Here is an informative link:

Good Link, WV!

Bonnie, when title to the mineral interests is difficult or impossible to clearly determine, they will take leases from everybody. If the well is successful, they will leave the royalties in suspense until the possible mineral owning parties sort out who owns what or otherwise comes to some agreement and settlement.

The companies aren't in the business of straightening out your title. Taking leases from everybody is a fairly cost effective way of "protecting" themselves.

Hope this helps -

Charles Emery Tooke III

There is a saying:

“Tackle the backfield and let the courts throw out everybody who does not have the ball.”

Buddy Cotten

HA HA! Never heard that one before.