My wife’s family has 200 acre lease for oil and gas mineral rights out near Nacogdoches, Texas expired. The prior leasee said they went out of business so that is why they did not renew the lease last month. So now we are wondering how/where to advertise that the property is available for leasing again. In the past, when this type thing happened, we would get a call from someone interested in leasing the property but this time that has not happened yet so curious how a mineral owner can advertise this property. Any advise is appreciated.
If someone is interested in leasing your minerals, they will get in touch with you, thats the best advise I can give. If you’re having to advertise your minerals to get them leased, you’re probably going to get low balled. I’d sit back and wait for someone to get in touch with you.
You cannot really advertise. First, there is no forum for that. Secondly, oil companies will come to you when their geological research, logs and tests tell them to drill there and not before Third, if you advertise you will look too anxious to lease and will hurt your bargaining position.
Agree with the others on your question about advertising, but the fact your lease is now outside the original lease term doesn’t flag that your interest is now open for lease. The way to make sure landmen leasing in your area are made aware your mineral interest is available is to get a document called a “Release of Oil and Gas Lease” signed by the Lessee and have it recorded in your County’s deed records.
Lessees typically won’t provide a release unless a mineral owner presses for it, or a requirement was included when the provisions of the lease were being negotiated. Your former Lessee going out of business may make one even hard to obtain but I think is worth checking whether there is still someone who can sign for the company.
If that doesn’t work, you can record a document called an Affidavit of Non-Production in the deed records so anyone checking the chain of title is made aware the lease expired and your interest is not held by production.
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Thanks for your advise Ernst, Aimee and Dusty1.
Save your money, if a company wants it bad enough they know where and how to find your family.
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