Replies to This Discussion

Permalink Reply by Bobi Carr ("parker") on December 16, 2008 at 10:39

And production is not going to RESERVE them.

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Permalink Reply by The_Baron on December 16, 2008 at 12:51

Exactly. Although it would be the new owners responsibility to notify the operator of their new status.

The roylties would belong to the new owner from the date of the sale of the land.

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Permalink Reply by Bandit, UMO on December 16, 2008 at 13:58

I think the question being asked is: At what point is the mineral ownership severed from the property?

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Permalink Reply by Two Dogs, Pirate on December 16, 2008 at 14:02

At time of sale.

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Permalink Reply by The_Baron on December 16, 2008 at 14:22

Mineral ownership is only severed by a mineral reservation or a mineral deed.

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Permalink Reply by The_Baron on December 16, 2008 at 14:21

Granger, you are very incorrect.

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Permalink Reply by The_Baron on December 16, 2008 at 19:19

Thank you Jim, but to elaborate,

You convey all all right, title and interest in and to that land, subject to all leases and servitudes. This includes O&G leases, pipeline ROW's, utility ROW's, homeowners covenants, and so on....

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Permalink Reply by Etta Foster on December 17, 2008 at 3:18

Let me qualify this answer by stating that I am a 30 yr veteran title person. If you do not sever the minerals by reservation, conveyance, etc all interest in and to the land is conveyed to the new owner.

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Permalink Reply by The_Baron on December 17, 2008 at 4:16

All interest owned by the vendor, yes.

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Permalink Reply by Dion Warr, CPL on December 17, 2008 at 4:07

Group:

Is it too late to jump on the "S J is wrong" pile-on?

How about the "S J should not be giving his cell number out, particularly if he's gonna give out that kind of info" pile-on?

Production may hold a lease, but neither the lease nor production is going to reserve royalties, mineral rights, surface, or anything else in the sale as contemplated here.

If the conveyance is silent as to minerals, it is understood that you conveyed the minerals in the sale. A reservation of mineral rights must be an affirmative act in the sale (e.g., 'Vendor reserves all right, title, and interest in and to the minerals lying in, on, and under the subject property', or similar words of art). It may be stated that the sale is 'subject to all valid mineral reservations, leases, servitudes',etc., but stating that there may be prior acts which may affect the property does not create a new reservation or mineral servitude all by itself.

The seller might receive royalty payments after the sale, but the seller is not entitled to them, and probably would only have received them in the event that the purchaser did not give timely notice to the lessee (or its successors or assigns) that he had bought the property. In virtually all printed lease forms, there is a provision that states that lessee must be provided with evidence of a recordable act which would give lessee notice as to any change in ownership after the execution of the lease, prior to any such transfer becoming effective to the lessee. So if lessee pays seller in error for a few months or so, it is not their fault, or their problem.

As a matter of function, the lessee usually attempts to recover the royalties paid in error to the seller, but also pays the purchaser the royalty to which he is entitled, effective the date of transfer of ownership. But there is no additional liability to lessee as a result of the situation; lessee cannot be reasonably expected to station someone in the courthouse to constantly update title in anticipation of such transfers of ownership.

Incidentally, if such an event did occur, why would they need to talk to S J about this? Particularly if they should be talking to me? My cell number is... oops wait, giving my cell number out might be considered solicitation without paying for an advertisement... (sorry Keith) I mean, they should be talking to (shameless plug) Skip Peel, site sponsor and personal landman to the stars, whose ad is right here on the site!

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Permalink Reply by BirdDawg, plain ole' idiot on December 17, 2008 at 6:14

If ole SJ is a landman, I dare say he may be unemployed. Or if he isn't, maybe he should be. Three different times recently I have purchased land and the sellers did not reserve the minerals. I have since received the royalty checks on the property that was under production.

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Permalink Reply by Two Dogs, Pirate on December 17, 2008 at 16:37

BD, that is what I have been trying to say in simple terms but others try to cloud the deal with BS.

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