I am a relative newbie to leasing mineral rights, I did, however do some research prior to leasing my inherited mineral rights, and came up with an equitable agreement. Now that all of the initial paperwork is done and the lease is signed, how long before they start drilling? How will I know IF they are drilling? I did get a pretty good bonus check, but I want to know when we should be expectiong royalties to kick in.
Any input would be appreciated.
Respectfully,
Paula D'Anne Smith
Paula,
They may choose not to drill at all. In that case, you would need to wait out the lease to the end of the term (usually 3 years) before you can lease the minerals again. Also, the leasing company may be working on leasing several sections before drilling, so that will take quite a bit of time. If they do drill, there is no guarantee that there will be any production. So I would not wait by your mailbox for a royalty check. It may be years in coming, if at all.
Paula, What section did you lease, we have inherited mineral rights also and it would be nice to know what area they are interested in.
Robert A Mack Sr
I don't have the lease with me, I know it is on the JH Gibson Section D. My Great Great Grandfather homsteaded that area. I will look it up and let you know. I have had other offers in the time that the lease was processing, so there is interest in the area.
How do I find out if they do intend to drill?
Steven Lackey said:
Paula,
They may choose not to drill at all. In that case, you would need to wait out the lease to the end of the term (usually 3 years) before you can lease the minerals again. Also, the leasing company may be working on leasing several sections before drilling, so that will take quite a bit of time. If they do drill, there is no guarantee that there will be any production. So I would not wait by your mailbox for a royalty check. It may be years in coming, if at all.
* Block D I don't have the section #'s
Paula D'Anne Smith said:
I don't have the lease with me, I know it is on the JH Gibson Section D. My Great Great Grandfather homsteaded that area. I will look it up and let you know. I have had other offers in the time that the lease was processing, so there is interest in the area.
Does anyone know if there are any plans by Oxy to do any new exploration or going deeper in the Wasson(San Andres)Field area?
Paula,
Are you part of the MB Sawyer descendents?
Paula D'Anne Smith said:
I don't have the lease with me, I know it is on the JH Gibson Section D. My Great Great Grandfather homsteaded that area. I will look it up and let you know. I have had other offers in the time that the lease was processing, so there is interest in the area.
My great great grandfather was Heath. His daughter, Esther, was my great grandmother. Her brother was a lawyer and administered the estate so that the mineral rights remained in the family.
Robert A Mack said:
Paula,
Are you part of the MB Sawyer descendents?
Paula D'Anne Smith said:I don't have the lease with me, I know it is on the JH Gibson Section D. My Great Great Grandfather homsteaded that area. I will look it up and let you know. I have had other offers in the time that the lease was processing, so there is interest in the area.