You are here:

Oil/Gas/old oil lease


Hello Mr. Jason, my question is that I bought 12 acres of lane with the mineral rights included that had a old Texaco lease that was in 1973 with the option to release for the next 50 years. Texaco only stayed on the land for around 5 years. After Texaco pull out there hasn't been any more money being pay throes a lease. Now there other oil company drilling in the area. Will that lease with Texaco that the old land owners had signed in 1973 stop these oil companies from leasing my land now, and should I contact Texaco to let them know that now I own the surface and mineral rights to the land.

If I am understanding your question correctly Texaco lost this lease from 1973 because they left suddenly and were not either holding it by production or paying anything to keep the lease active. The "option to release for the next 50 years" part has me a little confused. Typically a lease needs to be kept active by either production or some kind of rental payment.  It sounds to me like they broke the lease.

Regardless it would be the job of a new prospective leasing company to clear the title. It in no way hurts to speak with them if you are approached. It is good to always clearly understand all terms as confusing as they may be.

Finally the fact that you are now the land owner in addition to the mineral rights owner changes little. Perhaps a bonus payment here or there or right of way for access if new leases are signed may be due. Mineral leases are what are important here. Occaisionaly though leases are set up so that mineral rights revert to a landowner after a term. Now that you are both land this would only seem to protect you further. You seem
well positioned moving forward.  


All Answers

Answers by Expert:

Ask Experts


Jason J. Alexander


I can answer oil and gas division order questions. I am most knowledgeable about as the purchaser side of the oil and condensate production. I can offer suggestions regarding probate and basic transfers of working, override, and royalty interests. DISCLAIMER: I am not a lawyer. I have seem and know what my company for instance accepts pertaining to these matters. Being from the purchasing end (and not the operator side) I do not have much experience with calculations or valuing property or minerals. I do not deal with acquisitions, exploration, or development of leases either.


I am a Division Order Analyst with a crude oil purchaser. I have worked in the division order and customer relations departments for the past 9 with a first purchaser. My company purchases and transports oil for operators and we make revenue distributions on their behalf. I analyze division order title opinions, prior purchaser pay sheets, probate, and other conveyances related to the set up and modification of pay decks (divisions of interest) in leases (wells) of oil around the county. I have been involved in the set-up of our contract pay leases in conjunction with our marketing and regulatory departments.

HADOA: Member, 2013-2014

HADOA: March, 2014 Seminar The Land Department: Division Order Analyst Training Course, 2011 & 2007 NADOA 2010 Conference Land Focus: Fundamentals of Leases & Title Ownership, 2006 Northwestern University, BS Communications

Awards and Honors
Eagle Scout Award

©2017 All rights reserved.

[an error occurred while processing this directive]