Leasing Mineral Rights Underneath a Current Lease, Need Advice

Oil and Gas Leasing Help
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Currently I have a leasing agreement with company A that has several horizontal producing wells going. I have been contacted by company B that is offering to lease the mineral rights below the area leased by the first company (Apparently they can do this because of the Vertical Pugh Clause in the original lease that specifies how deep company A can drill).

If I do the deal I’m worried as to how it might effect the existing wells. I don’t want them to stop producing.

Anyone have any knowledge about this? Or any other pitfalls that I should avoid?

Thanks, Rustle

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You have proper concern that will be addressed when any new well is proposed in the unit. Any adjoining or unit party will be advised of a new permit and allowed to comment on the potential affect to their current operations. This means that the operator, who has a much greater financial exposure, will be representing the existing wells interest related to the new permits.

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