Previous owner signed lease for mineral rights

I just found out that the previous owner of my property signed a lease for the mineral rights - they failed to tell me this and it was not in any of the documents from when I bought the place. The lease will expire 1 year from now. I went to a meeting and found out about the lease and the man said something about I can go ahead and sign a new lease with them that will take affect once the old lease expires. They will pay a percentage of the bonus money now and the rest once the new lease goes into affect. How would this affect me if there is production before the old lease expires? The same company that I am meeting with also holds the old lease.

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Permalink Reply by Randy on August 7, 2008 at 1:46
It's called a 'top-lease' and they will give you a small portion up-front. If the lease does NOT expire for some reason they may or may not expect you to pay them back. Find out. Get it in writing in the lease of course. Tell them you would like a no warranty clause that goes as far as saying "monies can not be recovered, not even so far an extent as to any royalties, bonus monies, etc etc"

Randy
Permalink Reply by Tracy on August 7, 2008 at 7:08
Thanks Randy, Do you know if they will give me a copy of the lease if I asked for it? The previous owner will not return my calls.
Permalink Reply by The_Baron on August 7, 2008 at 8:08
The lease will be on record in the parish courthouse.
Permalink Reply by Tracy on August 7, 2008 at 9:47
OK, confused again! Sorry I am an idiot about such things!
"you have the same position as the previous owner" does this mean the lease was transfered to my name when I bought the property?
Permalink Reply by po boy on August 7, 2008 at 9:54
I think he means that it your repsonsibility to let them know you now own the property. How else would they know until it is time to resign?
Permalink Reply by Tracy on August 7, 2008 at 10:09
I had no idea the lease existed until yesterday! There was a neigborhood meeting with Chesapeake, they are the ones that informed me that previous owner had leased them the rights.

Previous owner claimed they "received letters from several companies but they never signed anything". They said they would send me copies of everything but they never did. I gave up trying to contact them after over a month of trying.

Sorry folks, I am an idiot about such things!

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