Expert: Frederick M. - 6/19/2009

Question
I am named heir of a property that was approached four years ago by an oil/gas company requesting a lease agreement.This has since expired. When the time comes for me to inherit the property, how may i begin to develop the gas resources.I live in Texas,the property is 1100 acres.

Answer
James, I would first try to determine what's going on around the property. If there's some drilling activity, or leasing activity, then it's worth paying attention to. You could take a trip to the courthouse in the county where the minerals are located and look for recently filed leases near your minerals, then contact the companies (if they haven't contacted you) and ask if they'd like to lease your minerals.

Most of the time you will not have to search for someone to lease your minerals from you. Usually, they will contact you if they are interested. This assumes of course that they can find you. You should be certain that your name and contact info are filed in the courthouse land records so that you are easy to find when the time comes. After you actually inherit the property, you may want to file an Affidavit of Heirship in the county where the minerals are located.

If you actually own the minerals, then you of course have the right to drill them yourself should you desire. Most mineral owners however would rather lease that right to an oil company due to the costs involved in drilling your own well. I'm assuming that's what you'd intend to do as well.

I guess my first step in getting these leased would be to contact the company who leased them before and see if they're interested. If not, perhaps they know someone who is, or at least could tell you what's going on in the area.

The Texas Railroad Commission is another good source for information about oil and gas activity in all areas of Texas. They have a website as well, which is free to use.

Hope this helps you out.
Frederick M. Scott CMM