AboutLaura M. FitzGerald, CPL Expertise I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.
Experience 26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells
Organizations American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)
Education/Credentials Certified Professional Landman, attended LSU, Notary Public
My question is pertaining to leasing of land for possible drilling. Three years ago our land was leased for a total of five years with the possibility that the company will drill for oil. So far nothing. This is the third time in at least 20 years that I know this land has been leased for five years for the purpose of drilling but nothing ever happens. My question is this, "Why does a company lease the land but not drill?" The lease will be over in October of 2010. Does the company know that oil is there and why lease it so many times and not drill?
Best,
Vanessa Walker
Answer Many times the conditions change which make the land not as favorable for drilling. This may occur from wells that are drilled nearby not producing as much as expected; or perhaps a dry hole was drilled unexpectedly. Evidently it appears the area lies within close proximity to a geographic play, but it has not been proven.
You are at least capturing the lease bonus money - even if they do not drill.
