Royalty and Bonus Question

in The absence of specific language in the Deed, are royalty bonus’ ever owned by landowner, if they own no royalty rights?

Not quite sure I am getting your question here…

Are royalties or a signing bonus owed to the land owner if they are not listed as the owner of minerals for a parcel?

Need some more clarification on a. what are you asking (bonus is the money you get for agreeing to allow access to the minerals - royalties are your share of the minerals removed from the ground and sold). b. Are there different owners listed for minerals and the land parcel (are there deeds naming both) or does the land owner deed specifically state that mineral rights were reserved by another party? If rights reserved/how long ago ?

It would likely come down to who owns the minerals and if they are reserved by another party. IF a person sold/reserved minerals over 21 years ago and there were no saving events and there has been no production or other activity, it is possible the land owner could seek to reunite the minerals to the land under dormant minerals act. This is not an “automatic” - it must be perfected and is something an attorney will need to assist you with as the requirements vary - but may include having to locate and notify descendants of a deceased mineral owner.

If you are asking does the land owner “share” in any part of a bonus/royalty for minerals sold by the mineral owner taken from their land - the answer is simply no. Land ownership is simply that. Just as if I buy land - I do not own the “rights” to the aky 10k feet above my land and the right for an airplane to fly over me. You own the surface rights only - the minerals 10k feet below belong to the owner of that and they do not need to share with you. Only if the producer would need to enter your property to access the minerals they own or have an agreement to market would they potentially “owe” you anything for (subject to what rights were reserved when the land and minerals were split - as this may have been something the prior owner of the land granted a right of way towards),

Best answer - call one of the many local attorneys in Woodsfield, Marrietta, Barnesville, Moundsville or St.Clairsville to review your case - as they will be able to access deeds online and tell you what you have/don’t have pretty quickly in general.

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Thank you for your reply and I apologize for the vague question.

More specifically, if the Deed conveys the Executive Rights and leasing rights to a mineral owner, but is silent on the leasing bonus, is that bonus in part or in whole shared with or owed to the surface owner?

In short - the mineral rights owner solely would be entitled to lease bonus, royalties or any other benefit of the ownership of the minerals. The land owner would not be entitled to anything - as they hold no claim to anything reserved by the mineral deed.

Executive rights would seem to indicate the owner is a non participant mineral holder (i/e the right to collect royalties, but not the ability to enter into a lease - a non particpatory owner). In some cases a person may be a minority holder and hold only executive rights.

Leasing rights would include the right to enter into a lease and any bonus earned as a result of this action.

Of course, just my opinion - a qualified O&G attorney should always be consulted for professional advice - forums are just public opinions.

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Best to have an attorney in the state where the minerals are located review what you have.

Dear Mr. Lanier,

In which state are the properties located?

Best,

Buddy Cotten

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