AboutDavid B. McCall Expertise Questions regarding oil and gas exploration and production, the operation and management of oil and gas producing properties, and questions related to mineral ownership, title problems, and oil and gas leases.
Experience I am Board Certified in Oil, Gas and Mineral Law in the state of Texas. I have more than 34 years of experience in the industry as both an in house attorney for major oil companies and as a partner in oil and gas firms. I am also a mineral owner and receive royalties from oil and gas production. I have extensive title examination experience, and have represented clients in many administrative and court proceedings.
Organizations State Bar of Texas, Texas Bar Foundation, and Austin Bar Foundation.
Publications Various state bar seminars on Oil and Gas matters.
Education/Credentials I have a business degree in marketing from McMurry University, 1971, and a JD degree from Texas Tech University in 1974, where I graduated 17th in my class. Board Certified in Oil, Gas and Mineral Law in 1986.
Expert: David B. McCall Date: 7/17/2008 Subject: oil & gas lease
Question 40 years ago my grandfather signed a lease on 200 acres of land to an oil & gas exploration company for $2 an acre. Apparently, this lease is still in effect. My grandfather could not read and write, although we have little details about the circumstances regarding the signing of the lease. Now, the heirs to the property would like to negotiate a new lease. (There is abundant natural gas in this area--northwest Louisiana) There has been no exploration or wells drilled on the property, although there are many on adjacent tracts of land.
Any ideas about how to break this lease? The company is not receptive to this request.
Thank you
Answer Hello Richard. The first thing you need to do is determine if the lease is really still in effect. Is anyone in your family receiving royalty from production in the area? If so, your property may be in a pooled unit which has kept the lease alive despite its age. Use the resources at this link to help you in this regard:http://dnr.louisiana.gov/cons/conserv.ssi.
If the lease is still in effect your ability to renegotiate the terms just because the lease is old, and new leases might be more profitable, is doubtful. A deal is a deal, regardless of its age. If you believe that contractual terms are not being complied with, and that there are legal grounds to break the lease or cause it to be renegotiated, then you need to contact a louisiana attorney to review your rights.
Good luck and let me know if you have further questions.
