Thursday, June 26, 2008

Leasing Questions

Please post all of your leasing questions here.


Anonymous said...

I attended one of the seminars. What I want to know is this, do I wait for more money up front or do I bargain for a better royalty percentage? How long could the royalties pay?
and what is a pue or Phu in a lease? Does that mean I can lease at different levels/depths?

Anonymous said...

Please define a section or unit? is it one mile square or is it based on the township? Do I get royalties on any drilling activity within the section or unit I am in?
Can I get a map?

Anonymous said...

What is lease flipping?

Gifford Briggs said...


Unfortunately, I cannot give advice on when to or not to enter into a lease agreement.

The length of time a well will produce varies immensely. We still are not sure how long wells in the Haynesville will produce. For everyone's benegit, lets hope for 10 years or more.

I am working on getting a correct answer to your other question.


Lease flipping is really not that different from flipping a house. Someone would lease your mineral rights or land from you, and would then turn around and lease to someone else for a larger amount.


A section or unit is 640 acres(1 sq' mile).

Yes you do get royalties on activity within your unit as long as you have leased your mineral rights.

A map of a section can best be obtained through the office of conservation.

K Dillard said...


What you're referring to is a "pugh clause". This is a clause that can and should be added in a lease agreement. It's purpose is to prevent a lessee from keeping a lease by means of producing a small amount from a shallow well. This provision also releases nonproductive or untested zones from the lease if drilling or exploration does not take place by the end of a specified time.

Anonymous said...

I live in the Belcher, Louisiana area, and I was wondering if you know of any plans on leasing in this area. Also, I just found out that a plot of land I own has been leased for awhile, but I was never contacted, or asked about a lease, or seen a penny. What can I do about this?

Gifford Briggs said...

I do not know the full extent of the Shale. It will be explored until the boundaries are known, but until then its a best guess scenario.

As far as your land being leased, you would have to look at your contract when you purchases the land to make sure that you purchased the mineral rights as well. It may be in your best interest to get legal counsel in this particular issue.

Anonymous said...

My family has 120 acres undivided in Caliborne Parish out of haynesville, La. There are three oil wells on property now. Can the same property be leased for the Haynesville Shale??? Jean

Gifford Briggs said...


The quick answer is yes. In order to drill additional wells, they must also have the rights to the minerals at those depths. You can check your contract to see if they leased all depths, or just specific depths. And then if the answer is yes, or you negotiate an additional lease, they can drill from the current rig, assuming that rig can operate at the speciifc depth and in the case of the shale, drill horizontally as well.

i hope this helps.

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