lease bonus affected?

If I sell part of my property, but keep the oil and gas rights, will it affect the lease bonus?  Is the lease bonus paid on acreage owned or the rights beneath?

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Permalink Reply by Julsieg1 on February 18, 2012 at 2:33pm

Thanks, Mark. 

Jim ShoosPermalink Reply by Jim Shoos on February 19, 2012 at 4:39am

The only thing that is "going to be affected" is what you will receive from the buyer of a "surface only sale".  Your sales price will be diminished significantly because as Mark pointed out, the surface owner is going to inherit the possibility of being compelled to allow his surface estate to be used for gas extraction activities.  The mineral estate is the dominant estate... meaning that if a severance were to occur the person with rights to the minerals is legally entitled to use a "reasonable amount" of the surface in order to achieve the extraction.  I will also warn you that some financial institutions are leery of granting a mortgage when they operate under the impression that mineral extraction could somehow diminish the value of the surface estate (if a major environmental event were to occur).  I'm not saying that its a legitimate concern...just a concern that I have heard banks express.

Permalink Reply by Julsieg1 on February 19, 2012 at 2:44pm

I've already leased, but someone is interested in buying a few acres and I didn't know if it would affect the possible 2nd bonus after the lease term (if there is one).

Permalink Reply by Billy Park Whyde on February 19, 2012 at 6:03pm
Permalink Reply by Julsieg1 on February 21, 2012 at 2:08pm

Thanks for the info; thankfully, Shell has been pretty "stand up" and paid us very quickly.

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