We are currently in a lease with one production company on section 32-6N-7W, yet just received a registered letter offering a new lease with a second company. The second offer mentions a specific well and depth. The letter states "Grady County records indicate that you own an unleased mineral interest and/or a leasehold interest within the captioned section.
I don't understand how we could enter into two separate leases for the same section. Does it have something to do with "leasehold interest" above, or did the second company just not do their research properly.
I'm not signing anything until I understand what's going on...
Thanks.
I can't say I understand the legalities if leasing. My experience is that I had signed a lease with Jackfork, and two years later Neufield bought up the lease from them. We did not have to agree with it because we had been paid for our lease. The lease was simply purchased by another company. Hope this doesn't make things more confusing.
Gary
Thanks Gary. Your experience is what I would expect to happen. I'll see if I can get any answers from the second company when I call.
Talked to the lawyer for second company. Pretty much as we expected. They just missed that we were already in a lease.
I was reading the original lease and it has a paragraph about an option to grant an additional lease (top lease). Can anyone tell me what that means?
Thanks.
Google search on "what is a top lease": Top lease refers to an oil and gas lease wherein the bonus consideration is paid at the signing of the lease. It is the granting of a new oil or gas lease prior to the termination of an existing lease. The lease becomes effective only after the expiration or termination of an existing lease on the tract of land.