An offer has been received from a company wanting to lease mineral rights on our 40 acre tract but none of the adjoining land owners have received similar offers. A lease already exists on this property but will expire in about one year. I don't understand why they are interested in leasing only this small tract. Any ideas on the motive?
Bill,
My experienced guess is that your lease is the first to expire and may be the desired drill site. An operator has or would like to drill in the area and has or expects to apply for a drilling permit. The operator or lessee needs some time to finance the drilling or go through a Commission hearing before your lease expires. I advise you to look at your lease and see what happens if you top lease and find out who is doing what in the area then only deal with the operator that will get things done after the lease expires or is terminated by the lessee. Read that lease carefully.
Thanks Gary, that makes sense.