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Permalink Reply by Sylvester Deal on May 27, 2011 at 12:04pm

Dlions,

Was the leasee notified of the subdivision?  Existing leases are not subdivided.  It is the responsibility of a person acquiring an interest in an existing lease to contact the leasee and identify/report the change in ownership.  Generally, a certified copy of the deed is sufficient to document the change.  Your deed probably has a clause stating "subject to existing leases, easements, and right of ways".  The lease is still in effect, if the payment was distributed based on the original ownership due to lack of notice.  Notify the company of your ownership and ask their requirements to document it.

 

Good luck!

SD

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Permalink Reply by 0l1a6laz7smpf on May 27, 2011 at 2:29pm

Did you have the purchase recorded in the public records of the county that the land is in?   I am not a lawyer but it seems to me that the owner that you purchased that land from owes you some money and that should have been discussed.   Simple math....number of acres under the lease and the amount paid per acre....then multiply the amount per acre per the number of acres you purchased and deduct that from the check.   Now as far as taxes go then you need to call the revenue office of your state or an accountant to see how the tax deduction is paid...and/or the relative can return the check to the lessee and ask for them to write two checks (one to you and one to them) and you should do this soon.   And you best see what documentation that the lessee and you all need to establish the payment record for both you and the other owner for if any royalties or well negotiations are paid you don't want to wait til the check comes in the mail.

A way to pull up the public record on the deed is thru landex.com in some states....hope this helps.

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Permalink Reply by 0l1a6laz7smpf on May 27, 2011 at 3:44pm

additionally Dlions, I just read your discussion info again and I must say that you are leaving out some info that would help in giving you some help.   Was there a contract in writing explaining that you own the mineral rights on the land?  If so, why were you not involved in renegotiating the new lease?  In fact, why wasn't the acreage taken out of the renewal lease and a new lease given to you?    Sounds like you might need legal advice if you cannot work it out with the lessee and the orig. owner of your land.   But first check if you have legal rights as if you are not named in the renewal lease and a bonafide sale of the land with mineral rights was made to you then they may have to form another lease with you regarding your land and really that renewal lease that was made with your relative (the orig. owner) will need an addendum or redone as it is covering acreage that does not pertain to being legal in the orig. owners name if it is in the description of the new lease.......It really all depends on what provisions are in the primary lease...that is why you most likely need to redefine the lease with your new purchase as seperate from the original owner's lease.   Sounds to me that the lessee would be glad to clean up this situation as it does leave them in a precarious position in being a lessee of land that isn't fully owned with the Lessor.

 I say this cause it is not a primary lease anymore...and you need to check the clauses in the primary lease as you could have done the new renewal perhaps with your acreage in a seperate negotiation for the clauses most likely were pertaining to the first five years (the primary) and not the second (the renewal).

And most important please do make sure that both your legal ownership with deed is recorded in the public records and any new lease with you as Lessor is recorded.   The O & G companies must list the acreage involved in units when applying for drill permits.

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