I have a few mineral interests in Oklahoma, and one parcel receives royalties from two operators (Mach and Encino in Custer 10-15N-16W). I was curious how this works, I know there are spacing limits but in general is it possible to have a second lease on rights that are already in production by another operator?
And when the current wells “run dry,” is there usually more to be extracted from a different well either at the same or a different depth?
Yes, it is possible to have multiple oil and gas leases on the same mineral interest, provided the original lease had some sort of depth clause. There are several scenarios where the original lease can be owned by different operators for different formations. That is probably the case here as the 2 wells are from different formations. There are also possibilities for more wells from the same formations and for different depths depending on the geology of the area.
You could also have been pooled by different operators in one or more of the horizons.
You can also have different working interest owners who take product “in Kind” and sell under their own contracts.
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