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Oil/Gas/Protective Leases


A producer wants to lease mineral interests we believe we legitimately own, but we have nothing of record that titles the interest in our name.  Since the producer wants to enter into a lease with us, we presume that their research suggests they believe we have legitimate claim to enter into such a contract.  However, they want to enter into what's being called a "protective lease".  I am unclear as to what exactly a protective lease is and who it is to "protect".  The presumption is that the producer (the lessee) would be protected, since they are the ones requesting such a lease.  Could you clarify what type of lease this is?  Thank you.

I have never heard of a "protective lease" myself, but I assume it could mean they want you to "warrant" the title to the minerals they think you own. Most leases have a "warranty clause" to that effect. If you are not sure you own them then I would strike the warranty clause in their lease. I usually tell companies that if they don't think I own the minerals they are wanting to lease then they should go lease them from who does own them. In most cases they will run the title prior to paying you to ensure you do own them. Even so, if you are not sure I would certainly strike any "warranty" clause they include in their lease form.

Hope this helps you out!
Frederick M. 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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