Until recently, Oklahoma courts have not addressed the issue of whether a multiunit horizontal well that is commenced off-unit can perpetuate a lease on the adjacent unit into its secondary term, if the lateral for the well fails to penetrate the unit in which the leased premises was located until after the primary term of the lease has expired.
by Stephanie Moser Goins[1]
Mineral estates in Oklahoma are generally subject to the same collection of laws governing real property as surface estates. For example, 84 O.S. § 213 governs the descent and distribution of property of estates located within the State of Oklahoma, including mineral interests. Laws governing real property and succession typically go hand-in-hand and are ideally yoked to accomplish one thing: marketable title.
Under Oklahoma’s Statute of Frauds at 15 O.S. §136, certain types of contracts, including contracts involving conveyances of real property or modifications thereof, require that the terms of the transaction be memorialized in writing and signed by the party to be charged, or the party against whom specific performance is sought. Cloud v. Winn, 303 P.2d 305, 308 (Okla. 1956). Because a lease of mineral interests is a conveyance of real property, an oil and gas lease must be in writing. Further, an instrument affecting rights in real estate must be filed in accordance with the recording requirements of Title 16 of the Oklahoma statutes to be valid as against third persons. See Amarex Inc. v. El Paso Natural Gas Co., 1987 OK 48 ¶ 14, 772 P. 2d 905, 908.
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