I have an Offer to lease from Antero, for a parcel in Wetzel County, Magnolia district. The very same parcel is already under a lease, effective August, 2019.
Can this be done? Legally?
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Yes, it’s called a top lease. When does your August 2019 lease expire?
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Howdy, It’s not my lease. I discovered that someone unrelated to me signed a 5 year lease (with the right to extend each year for 5 more years). It is the same parcel, DB number, and PG number as the lease I received from Antero.
Different owners can lease their own separate interest. If somebody else has leased, they are only leasing their fractional interest. They have no impact on your fractional interest. So, as long as you (or an ancestor) haven’t signed a recent lease, in all likelihood, you can execute a new lease.
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They should inquire of Antero and see what they think.
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I don’t lease anything for more than 3 years. I’ve got some acreage in OK. I leased it for 3 years. I received $32,000 the first time. Then $40,000 the second time. The last time I leased half of it for $24,000. Took a working interest in the other half. Wish I had the money to take the working interest on the whole deal. It paid back in 10 months. I’ve earned three times the profit vs the Royalty income. The current Working interest net is 10% lower that the royalty. But factor in the growth & dividends from the huge profit during those early years, that was invested in stocks, I’m way ahead. Choose wisely.
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That may be good advice. But my point is that if an ancestor leased it for a period of 5 years, or so, then the interest is leased until the primary term expires (assuming not production).
I was pointing out, Don’t sign a five year lease. Also spend the money and get an Oil & Gas Attorney to review any new lease before signing it.
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