2 Williams & Meyers, Oil and Gas Law § 503
Summary
- § 503.1 Separate leases by concurrent owners
A special problem occasionally arises out of separate leases, executed by concurrent owners to different lessees, under which operations are conducted by one of the lessees but not by the other. Does drilling or production by X, the lessee of...
When land or minerals are concurrently owned, each concurrent owner may execute leases to different lessees, thereby giving rise to a concurrent ownership of the leasehold. Or the owner of a leasehold may transfer an undivided interest therein to another in consideration of money, goods or services, thereby creating a concurrent ownership of the leasehold. Many of the contemporary methods of raising money for the acquisition, exploration and development of oil and gas properties involve the transfer to the investors of undivided interests in the leaseholds acquired in the course of the venture.
In the sections which follow we consider certain of the problems arising from concurrent ownership of a leasehold.