Private Land Drilling: Why BassEXP Operates on Private Leases

Private Land Drilling: Why BassEXP Operates on Private Leases

Where an operator drills matters almost as much as what they drill. BassEXP operates exclusively on private land in Oklahoma. This is a deliberate choice that directly affects permitting timelines, regulatory risk, and the reliability of our drilling schedule.

Federal Land vs. Private Land: The Practical Difference

Drilling on federal land requires permits from the Bureau of Land Management (BLM). The federal permitting process involves environmental reviews under NEPA, public comment periods, and multi-agency coordination. Average permit approval times on federal land have ranged from 6 months to over 2 years depending on the administration and region. Federal leases also carry higher royalty rates, currently 16.67%, raised from 12.5% by the Inflation Reduction Act of 2022.

Private land permitting in Oklahoma goes through the Oklahoma Corporation Commission. A standard drilling permit (Form 1000) is typically approved in 5-10 business days. There is no federal environmental review, no public comment period on the permit itself, and no risk of executive-level moratoriums or policy shifts. Royalties are negotiated directly with the landowner, typically at 12.5-18.75%, with terms locked into the lease agreement.

Why Regulatory Certainty Matters for Investors

When you invest in a drilling program, you want wells drilled on schedule. Permitting delays on federal land can push spud dates by months or years. That delay means your capital sits idle, your IDC deductions get pushed to a later tax year, and your projected cash flow timeline stretches out. For a direct participation investor, time is money in the most literal sense.

Federal land operations also carry policy risk that private land does not. Executive orders can pause new federal leasing. Regulatory changes can add requirements mid-process. The 2021 federal leasing moratorium showed how quickly the rules can change. Whether you agree with the policy or not, the uncertainty creates real risk for investors with capital deployed in federal drilling programs.

How BassEXP Handles Leasing

BassEXP acquires mineral leases directly from private landowners in Oklahoma. Our landmen work with local families and mineral owners to negotiate lease terms before we ever raise capital for a program. By the time an investor sees a Private Placement Memorandum, the leases are signed and the permits are filed. We control the timeline.

Operating on private land in a state with a well-established regulatory framework gives our investors something that federal-land operators cannot guarantee: a predictable path from investment to production. In Oklahoma, we know the rules, we know the timeline, and we execute accordingly.