You are here:

Oil/Gas/No Lease


I own 100% of surface and 50% of undivided minerals on a 100-acre parcel in Oklahoma.  I recently declined an offer for OGL, but have since discovered that the other 50% owner of minerals was located (he resides out of state) and signed up.  Since the oil company is now no longer courting me, in the event of production of these minerals, how can i best ensure that I'm included in applicable royalty payments?

You will need to check with the Oklahoma Oil & Gas Commission online site, from time to time, to check and see if a well has been drilled within a mile of your property, to see if your property may be included in a unit for the well.  Their website is:  
If you find there has been a well drilled, I would suggest contacting them by phone and inquiring as to whether you are in the well or not.  Before a well is drilled, since you are unleased, the Operator should send you an AFE, Authority For Expenditures, which will be a statement showing the costs for drilling the well.  Because you are unleased, you will have the chance to 'participate in the drilling of the well', and thereby become a working interest owner, or 'not participate', which is what you will probably want to do.  
If you do not participate in the drilling of the well, then you are carried as an 'unleased owner', and according to the specific laws of the state, yours being Oklahoma, which I am not certain about - the Operator gets to recover 100% plus another % as a risk factor - before bringing you in for your proportionate share of the revenue, less your proportionate share of the operating costs.  Note, I said, 'operating costs', these are minimal compared to the 'drilling costs'.  
It's usually a better idea to lease your lands, if acceptable terms can be agreed upon, because keeping up with the 'costs recovered' by an Operator, is difficult at best.

I hope my answer has helped you somewhat, this is a complex industry and difficult to navigate, as I'm sure you've learned.

Best of luck.
Laura M. FitzGerald, CPL


All Answers

Answers by Expert:

Ask Experts


Laura M. FitzGerald, CPL


PLEASE READ CAREFULLY BEFORE SUBMITTING A QUESTION. I can answer all questions related to oil and gas ownership, mineral interests and working interests concerning the leasing and selling of your minerals, any questions concerning pipeline ROW's, units with the Louisiana Department of Conservation; pooling provisions, depth limitations, vertical or horizontal pugh clauses; and oil and gas terminology. I can offer assistance in negotiating for leasing your property, assisting in locating owners of suspended funds or to receive the best offer for your oil and gas interests, should you desire to sell. I am only able to answer questions regarding oil and gas leases, minerals, royalties, or offers to purchase mineral/royalty interests if I have complete information. Please provide a full legal description for your interest(s). If the question pertains to a lease, please include all terms of any current (or desired) lease offers, including lease bonus amount, royalty and lease term. If the question is regarding a mineral or royalty interest offer to purchase, please provide the offer amount, date of offer, other offer terms, and further details on the mineral/royalty interest, such as lease terms, and if producing, the average monthly income. Since I receive numerous inquiries daily, I am only able to answer your questions efficiently and effectively if I have complete information. I must decline any questions submitted with incomplete information. If your question is non-technical in nature and you simply need assistance understanding an oil and gas matter, please submit your question with as much information and detail as possible. Any background information that has led to your question is also very helpful.


I have over 34 years experience as an Independent Petroleum Landman. I became a Landman after working as a paralegal for Oil & Gas Attorneys for 8 years. My first 2 years were spent specializing in Well History and Research with the Louisiana Department of Conservation, then moving into clearing title defects and handling title curative for oil and gas properties for the next 6 years. Subsequent thereto, I handled title issues, buying oil and gas leases and settling surface damages. I also acquired acreage for drilling prospects in excess of 10,000 acres. I also became a mineral/royalty owner commencing in 2004 and have found that I can help many people when they have reached the point in their lives they feel converting their minerals or royalties into a cash asset benefits them.

American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Certified by the Women's Business Enterprise National Council (WBENC)- South. This certification is one of the most widely recognized and respected certifications in the nation. This designation is reserved for only those women-led businesses that exemplify the characteristics of integrity and professionalism to which the WBENC adheres to so strictly.

Attended LSU, became a Certified Professional Landman in 1994; Notary Public with dual authority in multiple parishes in North Louisiana; Bilingual in English and Greek

Awards and Honors
Expert Oil & Gas Professional assisting attorneys representing landowners. Involved in 2 lawsuits and both suits were awarded to the landowner. Ilios Resources, Inc. has been awarded the Best of Shreveport Oil and Gas Mineral Buyer Award for 2016, 2015, 2014, 2013 and 2012.

Past/Present Clients
Consultant Landman for Texas Oil & Gas (TXO Production Corp.), Anadarko Petroleum, Comstock Resources,Independent Geologists, Pipeline ROW Clients, and Oil & Gas Attorneys. For the past 5 years my practice is primarily an advocacy for the landowner. I also assist royalty owners recover suspended payments or incorrect royalty payments, or sell their mineral or royalty interest.

©2017 All rights reserved.

[an error occurred while processing this directive]