Hello. I’m hoping someone can help. I’m completely new to this. I was contacted a few months back regarding a lease that needed ratified due to a death in the family and received a leasing bonus. I was recently contacted by someone interested in purchasing. A few questions: 1.) Do I need to pay any sort of property tax? 2.) The lease is up in Oct 2021, what happens then? 3.) Do I need to track down a deed to the property and have it put in my name?
Thanks in advance!
Hevphi We have numerous wells in Lea County. You have many questions and there can be many answers. Generally speaking, the mineral rights are leased until Oct 2021. Therefore it is under legal contract to the Lessee. I assume the original Lessor is a relative and has died. It appears they want you to ratify/verify you now may have interest in this tract. Title is needed to verify your interest. No taxes are due until actual production/revenue is received. If the Lessee or his assigns do not spud/drill or produce any well on the tract or pooled or unitized tracts around the lease, then basically the lease expires and the minerals come back up for potential leasing. The only well under production is the Scharb #9 in the Northwest Quarter operated by BXP Operating out of Dallas. That well has had numerous operators since inception. You do not state what the description is on the lease and that would help. Yes you need to get as much documentation/title for that interest as possible i.e actual lease copy, any deeds related to you and your relative. If someone is wanting to purchase, my advise is to hold off until you have all information on what you may own or do not own and then post for help if the offer is still valid. Take care Sorry for the general answers but more info is needed to assist.
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