Presently looking for legal information concerning a mineral lease that will expired within 4 weeks and a surface lease that will expire in 18 months.
My present situation is my signed mineral lease will expire soon and the surface lease agreement will expire in 18 months. The lease is located in Pawnee county Oklahoma, at that time drilling was going at a heavy pace. The surface lease had progressed to the point a well pad and slush pond had been built but then their funds were pulled. At that point no further development has been completed, I tried to get information from the business that was going to drill but the only information given is they are in the progress of selling their interest. This situation has been the same now for the better part of 16 months.
So my question is, once the mineral lease expires what legal recourse do I have getting the oil company to repair the surface damage back to "as existing" before preparation for drilling? I assume legal representation will be required but I would like to start getting ideas and/or information before hand. Any help would be appreciated, thank you. Glenn
If I expected to lease the land again in the future, I would consider the well pad added value in the next surface use agreement. Are you certain you want it remediated? What does it say in your surface use agreement? Whatever it says in the surface use agreement is what you are entitled to.
RW, thank you for your response. My quandary is once the mineral lease expires can the surface lease be forfeited due to not being fulfilled to the original intent of the contract? The surface lease is not needed if the mineral lease is not renewed and I want my land restored to "as before" conditions. The surface lease agreement has conditions to clean up and minimize surface usage once drilling has been completed. But now that the drilling company has pulled out and not going to drill is that enough legal reason to void the surface lease agreement? Not being a lawyer I am not sure but it seems like the surface lease should be forfeited due to not completing original intent.
As far as trying to get answers from the drilling company all I get is the usual run around and I have reached my limit of being patient. So my next step is to get an attorney involved but I was hoping to get some input from what others have experienced.
Glenn
Without knowing the specific terms of your surface lease, it's pretty much impossible for anyone here to provide any advice.
You best bet would be taking your surface lease agreement to a local attorney to see what your legal options are.
That said, it would probably be wise to wait for your Oil and Gas Lease to actually expire before you make any moves. I have seen companies come in on the last day and start getting to work.
Mr. Murray makes good points. Actaually I would not spend money on a lawyer yet. I certainly would not assume that the intent of the surface use agreement was void due to the expiration of your oil and gas lease. The ultimate high purpose of the surface use may be for a well but did your agreement specifically forbid the parking of equipment or use as a pipe yard? Did your surface use agreement specifically forbid it's assignment to another party? I don't really think you need a lawyer to play the what's missing game because all you need is one reason why the agreement is not void and I just gave you a couple possibilities. Then also, you may lease again in the next 18 months. I estimate that it would take more than 18 months to break an agreement that only has 18 months to run. I like my lawyer, I need to send him a gift certificate to Del Frisco's for all the free opinions he has given me [I offered to pay] but I don't want to pay his hourly rate unnecessarily.
The cheapest most economical way to get your surface restored is to complain to the Corporation Commission. Typically, they will fight your battle for you.
thank you for all the replies, there have been some very good points made. My frustration along with lack of information and communication from the drilling company has driven this. As it stands now the existing pad does not cause a problem other than loss of grazing which is not a whole lot needless to say. It's an issue of not following thru with intentions as agreed. If I had made agreements with the oil company and backed out for whatever reason they would have my rear in court within a heart beat. Again, thanks for the replies.