I own 130 mineral acres and I have had a producing gas well on it for some time. I was contacted by a company who wanted to lease this very same property for oil. Can I lease it out since there is a well on it already?
I have property that has a producing gas well. The lease was only to a depth of 5500'. Another company leased the rights under the first lease.
Sure, but to have a valid lease (other than a top lease) then the lease under which the gas well was drilled must have terminated.
You have to look at the lease you signed originally and find out if you have a Pugh Clause (or equivalent). It is very, very important to have such language in a lease.
With a Pugh Clause, a producing well can "hold" only a designated amount of surface area. Oil wells generally "hold" fewer acres than gas wells. Horizontal wells "hold" more than vertical.
There may also be a relinquishment below the producing horizon (frequently 100 feet below the producing depth. In this case all the acres are available to be re-leased for deeper drilling.