Every few years, Oklahoma sees a large influx of oil and gas activity, seen in many areas by the drilling rigs that light up the nighttime horizon. Now is one of those times. During the peak season, we get many questions from mineral owners wondering what they can do to be a part of this activity.
The first and most important action that an owner can take is to have open minerals available for lease. If you have an existing oil and gas well on your land, there are two main options to look into that might allow you to terminate your current lease. First, you might determine if your well is "producing in paying quantities". Oklahoma law and most oil and gas leases seek to prevent well operators from keeping an oil and gas lease alive with an poorly producing well. There are many things go into the determination of whether a well is producing in paying quantities, such as analyzing Corporation Commission records or reviewing royalty payments you have received. If you would like more advice on your specific situation, the Stillwater attorneys in our office are able to assist you with, so be sure to call our office if you have questions.
The second option is to pursue the full development of your property by the lease owner. Under most leases, working interest owners have an obligation to fully develop your minerals, as well as to ensure that your mineral interest is not being depleted from other wells in the area. If the lease owner does not follow through with this obligation, a court can order that all or a portion of an existing lease be terminated. Again, this can be a very complex question and is something our attorneys are more than capable to help you with. We have experience in many different areas of oil and gas law and are available to assist you on any number of matters that you may have. Contact our office before it's too late to profit from this season!