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Oil/Gas/Will they renew my Blaine County Lease?

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Question
My family has lease for Section 24, Township 15N, Range 11W...leased 03/16/2010 for 3yrs (QEP).  We have not heard from QEP about renewing the lease.  They indicated they had plans to drill.  Do you know whether there has been any drilling in this section (Blaine County, OK)?

Answer
If your lease expired without them contacting you, then they either drilled a well and you'll eventually hear about it, or they didn't drill, and weren't interested in re-leasing your minerals. In your case I'm afraid it's the latter. In fact there are no current drilling permits for your section or any of the surrounding sections, nor do I see any leases filed within the past year. This indicates a lack of interest in drilling this immediate area right now.

There is some drilling going on a few miles south of you near Greenfield, and perhaps it will "move north"; but for now I'd say you're in "waiting mode." If anyone is interested in leasing you in the future you will most likely be contacted by them. No need to try and "market" these for lease on your own really, since in most cases if you've been leased in the past (which you have) any company interested will make the effort to contact you without you doing anything.

There are a few websites out there claiming to have contacts with leasing companies, but such sites do a disservice to the mineral owner by getting their hopes up in my opinion because as I said most companies will make the effort on their own to lease you if they want to and don't want to pay some website to do it for them (they charge either you, or the lessee a "fee" for it.) My advice would be to instead just wait for a lessee to contact you on their own as it puts you in a better bargaining position.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
www.mineralhub.com
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Frederick M. Scott

Expertise

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.

Experience

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.

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

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

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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