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Without notice of the previous reservation, new buyer could claim your entire 50%, being 50% of the entire tract, even if you only intended to sell him 1/4 of the entire tract (50% of your 50%. Have an attorney draft the conveyance for you if needed. "Mick" Scott CMM, RPL The Mineral Hub We have a lease on our farm that contains clauses that mention \"Provided that Lessor is the current surface owner ... If we have reserved the Mineral Rights and are now selling the Surface rights in a Real Estate Transaction, does the O&G company have to enter into a new lease with the new Surface owner or are the new owners bound by the lease we signed?
Google "Duhig Rule" for more info, or check out our "Articles" page as there is a good explanation of that Rule I've posted there..it would apply to your situation. The entire leasehold being sold is currently serviced by 2 producing wells.
Basically this guy is offering to pay you up front what it will probably take years to get on your own once the wells come in.
I received an offer for mine of 00/acre earlier this year.
I don't have but a few acres there, but I expect your checks with two GOOD wells would be less than mine since you have less acreage and a larger (multi-section) unit, but could still be around /month or so, at least at first.
At that rate it would take you nearly 10 years to equal the 00 this guy is offering to buy them for now, but more wells could be drilled in the future, possibly increasing your monthly checks.
Probably not a huge check with only 1.66 acres, but the payments could go on for years (until the wells deplete).
I own minerals in a township adjacent to yours in Hughes County (7N-11E) and am receiving checks of about 0/month from two wells Trinity operates there.
For this reason I like to LIMIT the amount of time a well can be shut-in to no more than 3 CUMULATIVE years. has a royalty reservation for 1/2 , reserved from 1900.New owners will be bound by the lease you signed until the lease expires.Kind of a tricky situation with the "provided that lessor..." language, but I think it would stick since you were the surface owner when it was executed. "Mick" Scott CMM, RPL The Mineral Hub First Choice was the successful bidder in a number of parcels in the State of Wyoming on-line auction held by \n Energynet on 11/8/2017.If they desire longer, they'll need to get permission in writing from me or will lose the lease. If I sell 1/2 the mineral rights, does that royalty reservation continue with the new owner of the minerals as well as the current owner. If you sell 1/2 your mineral rights, you should include something to the effect of "subject to prior reservations" on the conveyance, in order to put the buyer on notice that your minerals are subject to a previous reservation and thus you don't own 100% of the minerals under the tract being conveyed.I'd try to get some sort of limitation on the shut-in period if you can, but if they just won't do it you could just ask them to throw some more money your way, or increase your royalty fraction etc. SAMPLE: SHUT-IN ROYALTY: After the end of the primary term, this lease may not be maintained in force solely by reason of the shut-in royalty payments, as provided for in this lease, for any one shut-in period of more than one (1) year or for shorter periods which exceed three (3) cumulative years without the written consent of Lessor, whose consent shall not be unreasonably withheld. If you do not do that, the buyer could assume you are selling 50% of the entire tract, not 50% of your 50%.