What exactly does a lease mean?


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!

Hi Dan!

If you will provide us with your legal description we can look your area up and tell you whether it was ever drilled or not.

If you will read it, you will see that a lease provides that the company can drill on the land or on lands it is pooled with in an attempt to successfully complete a commercially viable oil and gas well.

The one time payment is a Lease Bonus payment. An incentive to sign the lease. It is a per net mineral acre amount of money, although smaller mineral interests may just get a flat rate.

The 5 year term is the Primary Term. The period in which the company has to commence operations for the drilling of a well.

Hope this helps -

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

I'm no number specialist nor do I have a crystal ball, but as I read your post, you are saying that 10 years ago, you received a 5 year term lease. That would have made the year 2012 that the lease ended, provided there were no extensions.

I don't understand. It's been 5 years with no valid lease, that I know of. Why are you just now asking these questions?

Am I missing something here?

Good luck,


Hmm... Unless they drilled and couldn't locate the family when it came time to pay royalties.

Let's see if Dan can send us the legal description(s) and go from there.

Hi all and thanks for the reply! The lease began February 20, 2008. The term was for 5 years as I recall. After that 5 years we had hoped they would renew it but they never contacted us again. I’m pretty sure they know how to find us since we are on the tax rolls for that property. The legal description is Section 5 Township 11 N Range 14 W. Thanks again!

No Wells have been drilled in Section 5. At least not yet.

Ah bummer. Thanks for checking!