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Oil/Gas/Oil and Gas Lease in Roger Mills County


I own approximately 20 acres of mineral rights in section 3-12N-21W in Roger Mills County Oklahoma.  Cordillera Energy leased it for what I thought was a good price (around $2,500 per acre). The land man said the area was hot and he expected them to drill on it in a matter of months.  It has now been a year and a half and as far as I can tell from looking at the current drilling reports there is not much activity in that section, and not much drilling activity from Apache.  With less than 6 months to go before the lease expires I am a little surprised there is not any activity.  Is there any information you can provide?

Also, when does the lease technically expire?  When the land is being cleared for the rig? I cant find much information about this matter.  

Thanks a lot!

Roger Mills County, OK, and western Oklahoma in general, has seen a huge slowdown in activity over just the past few months. My feeling is that this is due mostly to the low price of natural gas. Thought it has come up some in the past month or two, it needs to STAY up (and probably go higher) before the activity will pick up much around this area.

It's been pretty "hot" over the past two years in this area though, so even though there's been quite a decline in activity it's basically gone from "hot" to "warm" (but not cold.) Other areas of the state never really "warmed up." You're in a good area actually.  I think it will pick back up eventually, but could take a year or two more.

The lease technically expires on the anniversary date of the lease (usually listed at the top) once the primary term is in it's last year; however, if they "commence drilling" a well just prior to that date they will generally be allowed to complete it without losing their lease (i.e. without having to lease you again even though technically they went past the expiration date.)

I doubt a judge would agree they could just "move some dirt around" prior to expiration and expect to keep the lease going until they drilled a well though, unless they proceeded in a "workmanlike manner" (i.e. didn't wait two months longer to put a rig up etc.)

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub  


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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