Hi There… New here and trying to make sure I understand this deed correctly. the grantee is getting just the right to lease the minerals but does not decide on price, term or lease verbiage? Does this mean grantee is the mineral owner over the land being purchased without any royalties? Thanks for any help on this.
Since the entire WD is not available for viewing, this is a very limited analysis to the mineral estate. This is a term MD. The term is 25 years after the death of the Grantor and as long thereafter as there is production. The Grantee maintains the executive rights, but has no economic interest in any OGL.
DEED PRUETTs mom.pdf (1.7 MB) Hi James, Thanks for replying. I Have attached the Deeds to view in whole. I’m trying to figure out what the Grantee received as they were conveyed to us when we purchased a tract of land. The oil and gas lease had expired due to non-production for over 5 years but now are fighting the operator who is claiming the lease is still valid.
The first test, is the Grantor deceased and if so what is the DOD since that starts the 25 year reservation in the original grant. Are you questioning on the Grantor or Grantee side of the transaction? You may want to attain legal counsel as to who maintains or has the obligation for OGL enforcement since the deed does not speak to that issue.
Operators generally fight the issue, but an affidavit of non-production can be filed with the county recorder’s office. Be sure of your facts and seek legal counsel prior to filing. Provide a copy to the operator so they can contest the issue.
The grantor passed away in 2013. I’m questioning the Grantee’s side of the transaction and what rights were received. Additionally, if there has been no production and no royalties have been paid for longer than the lease term allows, wouldn’t the lease expire? And what about the royalties? i attached the original lease but it’s so hard to read.
1976 LEASE.pdf (1.6 MB)
The lease is currently in litigation that’s been ongoing a few years now and I just filed a good faith with the RRC as well.
The Grantor died in 2013, so the term mineral interest runs until 2038 or with continuous production whichever is longer. You will need to speak to an attorney, but the Grantee currently only has limited executive rights. Most likely, the standing to challenge the validity of the OGL remains with the Grantor’s estate.