What does a lease mean exactly?

Hi all, thanks so much to all of you that give your time to help us newbies.

About 10 years ago we received a lease from Arrington Oil on land we had mineral rights to in Clinton (Van Buren County). The lease was for 5 years. We were paid a one time amount for the lease but have not been contacted since. My question are, is a lease just exploratory? How do we find out if they are drilling on our land? How do we find out if there are plans to drill?

Our land is just North of hwy 16. It looks like from a map I’ve seen quite a while back that most drilling is to the south of that highway.

Thanks again for any help you can give!


Arrington didn't get much done. And not much is north of 16, but you can check the website of the Ark. Oil and Gas Commission. If you didn't get a notice of intent to drill, then it isn't likely there is any drilling and the lease allows them to drill and produce. No production, your lease should have long expired. Right now the price of NAT GAS is very low and probably will stay low, possibly for 10 years or longer. You are pretty much going to think of your mineral rights as a generational investment. You might consider that you could set a cost basis if you inherited it. So talk to your CPA. Will be easier to do it now than your grandchildren to have to do it in 2050.