Back in the early 80s my grandfather entered into several leases for wells in Irion County, TX. The lease ownership has changed over time and only two producing wells remain - both minimal production. My family is discussing new leasing with an oil company but we were just informed that the existing two wells hold 640 acres each (1280 acres total). Is this possible? We do not have copies of the original leases but thought that Texas limited the acreage that could be held by a producing well. Thank you in advance for guidance.
The answer is determined by the terms of the lease. RRC deals only with well acreage and formations and that does not override your lease. Most 1980’s leases were filed of record so you should be able to obtain a copy. Ask the person who told you that the old leases each holding 640 acres for copies as he can only say that after reading each lease.
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Thanks for your response. We located the original leases but there is no mention of acreage reserved by a producing well. We leased one of the two sections in the 1990s and that lease reserved 50 acres for the original well. The new oil company hasn’t explained why they think two entire sections are held by the two producing wells. I guess our next step is to have our O&G attorney follow up.
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