Am I free to lease a part of my property that was never included in a unit, and that has come out of lease?

I have 50% of my property in a producing unit with one driller, and 25% in another producing unit with a different driller.  The remaining 25% was never in a unit and has recently come out of lease. Am I free to lease it again if I find an interested party?  The original 5 year lease included the entire parcel with one driller who assigned 25% to another.

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Sure, why not?  Yes, of course.  

I'm assuming you already have received in writing a partial release of lease for the 25% portion of your land you now wish to lease going forward.  That written partial release, ideally, will include a map showing the released land.  If you do not already have the partial release, you surely are entitled to it and should request it forthwith.

Getting the partial release will be my next step. Thanks for your input and I will post their response to my release request. 

Unless your lease has a pugh clause I dont think you can re-lease the your property that is not in a unit.  Asking for a release of lease for the acres affected will tell you whether your locked in or not.  Good luck...


Thank you, Mike.  I should have picked that up in the OP when I responded earlier, but I did not.  Yes, of course without a Pugh clause Robert is locked in for the entirety of his land, which is now HBP.  Certainly hope he has a Pugh clause in his lease.

It's funny, I had something similar to this happen to me.  Was responding from personal experience without thinking this all the way through.  While I have a Pugh clause, I failed to remember not every landowner has one.  Pugh clauses are a really big deal, and determinative in Robert's situation.

Depends on if your lease has a Pugh Clause which is an addendum stating that any acreage not pooled into a unit is released at the end of the term. If you don't then all of your leased acreage is held so long as there is production from any part of it. If you signed the operators lease without asking for changes then it likely does not include a Pugh.


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