My question for a family member in Guernsey County is this:  If there were a "reservation of one half of all the royalty" written in the deed at the sale of a parcel of land, and the leases and wells in effect at that point in time have since been plugged, abandoned, and leases released, would the reservation hold water on future royalty generation from a more recent lease?  I have asked plenty of competent lawyers and I get conflicting answers so please don't bother suggesting I get a lawyer even though thats what will ultimately happen.  If you want to suggest a particular lawyer that has solved this issue, then I am all ears.  It is obviously a bit grey and needs some more opinions given on the subject. 

 

Exact Statement in Deed:  "Excepting and reserving unto grantors herein, their heirs and assigns, the one half of all the oil and gas royalty from said premises from and after (Deed Written Date).  It being the intention to convey to grantees all of the royalty in the oil and gas except a one half thereof."

 

Since they are reserving the "royalty", some attorneys have told me that is a reservation of royalty for a lease/well at the time of the deed but once that well is plugged and the lease released, then it no longer applies to future royalties from future leases.  They said someone cant reserve a royalty on a future lease agreement.  Other attorneys have told me that it does apply to royalties on future lease agreements.  If it were a reservation of oil and gas rights, this would obviously be a different ballgame.

 

Thanks for any input you may have.

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To answer kbrooks. My relative is currently collecting royalties from a shallow HBP well that has since been drilled under the provisions of a subsequent lease. This lease was entered into a few deed transfers later than the royalty reservation issue at hand. The producer is paying them 100% of the royalties from that tract of land and not 50%. No abandonment has been attempted as of yet and no owners have come forth claiming the other 50%. Thanks again for everyone's input. This is generating interesting conversation.

So does anyone have a good idea the "heirs and assigns" is in a O&G reservation. I've seen deeds where the estate simply reserved the O&G rights, with the other language omitted. Does that mean after the estate goes through probate all rights go back on to the deed? Great questions here. 

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