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Permalink Reply by Akuda Matada on December 20, 2008 at 4:44

You cannot take over the lease only because you purchased the property, if the previous owner already lease back in May, then he/she has the rights to any royalties to that lease, only SHOULD the lessee drills and that well produces, however, even if the well does not produce, just by spudding (moving dirt to attempt to drill) before the lease expires, this will maitain the lease for ten years, and if in within ten years, there is no production, then the minerals will automatically prescribe to you, this is what is called "Mineral Prescription" in Louisiana, the only state who has such thing. BUT, if there is no attempt or spudding, from the lessee before the lease expires, should it be a 3 or 5 year lease, then yes, the minerals prescribe back to you after the lease expires. So it doesn't matter what attempts you make to get the lease in your name, the lessor would have to sign an agreement changing it over to you, unless one of the two aforementioned occurr.

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Permalink Reply by Two Dogs, Pirate on December 20, 2008 at 4:51

That is not correct. The lease goes with the property unless there is a mineral reservation. KB is correct in what to do.

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Permalink Reply by The_Baron on December 20, 2008 at 16:14

Two Dogs is correct. The Royalties go to the Current mineral owner. The new owner is subject to the previous owners lease, but the previous owner gave up their chance to get mineral income when they sold without reservinving the minerals.

Think of it like buying a renthouse. If you buy a renthouse that has tennants under lease, you buy subject to that lease. You can't kick them out untill their lease expires, but you benifit from the income from their payments.

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Permalink Reply by intrepid on December 20, 2008 at 10:08

Aren't ya'll assuming the property is in La.? After re-reading the question I am not sure where the property is located.

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Permalink Reply by juls on December 20, 2008 at 15:23

this has happen to me so what you are saying I need to send a letter to oil and gas company with the copy of the deed ?

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Permalink Reply by The_Baron on December 20, 2008 at 16:17

Most leases will have somthing in them that stipulates that it is up to the leaseholder, its successors and assigns to notify the lessee of changes in address and ownership.

As a buyer of a mineral intrest, it is your responsibility to notify the oil and gas company as to your new status.

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Permalink Reply by J.J.Jones on December 21, 2008 at 3:40

I appreciate all the help you folks have given me on getting this done. Is it possible to get a new lease or maybe a re-lease in my name and my address? without the signing bonus of course. The lease was with Brad Wright thru Clark Energy for Camterra Resources.
J.J.Jones

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Permalink Reply by Grice on December 21, 2008 at 4:52

To draft a lease (in your name) on property already leased (in Brad Wright's name) could complicate the situation. Once the assignment has been filed into record, it will serve as evidence of your ownership. If you simply want your name to be represented, attach a certified copy of the assignment to your property deed. This is not to say that the company will not issue a modified lease form, but I would think they would want to avoid any possible complications.

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Permalink Reply by Grice on December 21, 2008 at 5:06

The_Baron, as an offer of support:

"The rights of either party hereunder may be assigned in whole or in part and the provisions hereof shall extend to the heirs, executors, administrators, successors and assigns, but no change or division in ownership of the land, rental, or royalties, however accomplished shall operate to enlarge the obligations or diminish the rights of the lessee. No such change or division in the ownership of the land, rental, or royalties shall be binding upon lessee for any purpose until such person acquiring any interest has furnished lessee, at its principle place of business, with a certified copy of the instrument or instruments, constituting his change of title from the original lessor."

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