Replies to This Discussion

Permalink Reply by po boy on August 30, 2008 at 10:40

Thanks for the heads-up. I have contracts from several co. and will check IMMEDIATELY.

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Permalink Reply by po boy on August 30, 2008 at 15:29

I checked alll the sample leases I have from different companies, and though they were some what vague,found nothing similar to your concern. Could you please post the exact wording of the section you mentioned?

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Permalink Reply by jkw3 on August 30, 2008 at 11:20

Are you talking about a reversionary interest clause where any additional interest in that property which you acquire in the future will be subject to the lease? These clause are not unusual and should provide for additional consideration for this additional interest. Otherwise, in my thirty-four years of experience in the business, I have never heard of any so ludicrous as what you are stating! Given, there are some questionable outfits who buy (not lease) minerals or royalty and offer an instrument that covers any other minerals in that county or parish. Usually they don't hit you until after production has started. Avoid them like the plague!

I do wish that some of the posts here were more than "this was made aware to me..." or "I heard that..." The people who use this website are seeking real, verifiable information.

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Permalink Reply by Two Dogs, Pirate on August 30, 2008 at 11:31

jkw3, have you ever had one of those "everything you own In the parish" come into play in what you were doing and what was the outcome? I have one of them in a project that I am working on but have not found the grantor owning an interest?

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Permalink Reply by jkw3 on August 30, 2008 at 15:48

I own some royalty in south Texas and about twice a year I get offers from some "royalty" company offering to buy my royalty. The conveyance document them enclose has very liberally inclusive language that sometimes says "every other interest owned in the county". I trash the letter. These companies are buying off tax roles and doing no title research. Since they cannot accurately describe the interest I own, their language is intentionally ambiguous. Again, I do not deal with these companies.

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Permalink Reply by Two Dogs, Pirate on August 30, 2008 at 12:10

KB, that sounds like standard language in some lease forms. I think that Mr. Page may be talking about something else. If he would provide the clause he is talking about it may clear up the clouds in this discussion. Sometimes I have to put an after acquired title clause in a lease, ie someone getting a divorce and the property settlement is not of record but has been agreed upon. I am not an attorney and I would advise any person to seek legal advise from an oil and gas attorney before signing anything.

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Permalink Reply by jkw3 on August 30, 2008 at 16:12

KB - There is nothing wrong with the language you quote, especially when dealing with urban areas. Example - I own 25 acres in Union Parish. There was a parish road built that the parish was deeded twenty feet across the north end of the tract in the early 1900's. The minerals were reserved by the landowner. When it was later sold the description simply described the 25 acres less the twenty foot wide strip sold to the parish. No mention was made of the minerals under the road which the landowner had reserved. This omission was not intentional - the minerals under the road were probably intended to go with the rest of the 25 acres. The language you quote was intended to handle this type of situation. It is not intended and does not to cover a the situation where one owns two contiguous forty acre tracts and the lease describes one of the tracts and does not describe the other.

I am negotiating an oil and gas lease on my house lot in Fort worth. There is a street in front and an alley in back. When I bought the house there was a survey which showed that my property line was at the edge of the alley, not the center. The front property line is at the sidewalk, not the street. However, the offer to lease my lot included additional bonus covering half of the alley and to the center of the street. I did not demand this but it was offered up front. I have not researched whether the minerals under the street and alley were reserved in the original subdivision dedication, but I am being paid for them. The actual ownership of these slices of land probably will not be determined until the division order title opinion is completed, but that is after the well is drilled and completed. It is better for both parties to set up front that the lease covers all the land intended and include these small slivers since that is the intent of the parties.

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Permalink Reply by Thomas J Page on August 30, 2008 at 13:42

I suggest you re-read my statement. There are a lot of unknowns dealing with leases. BEWARE OF STRANGERS BEARING GIFTS !!!!!!

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Permalink Reply by Two Dogs, Pirate on August 30, 2008 at 14:34

Mr. Page, show me the clause. I don't know what you are talking about until I read the clause.

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Permalink Reply by Randy on August 31, 2008 at 14:14

Are you referring to a "mother hubbard" clause?

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Permalink Reply by reg on August 31, 2008 at 4:10

This is a great concern. Most leases have "Lignite and sulphur" language. just make sure your lease provides for natural gas and oil prouction only.

Note that gravel is considered a mineral under our law. So, in essence, a general lease can allow the company to harvest gravel, lignite (strip mining-similar to coal) and sulphur.

While this is not likely to happen in today's market, you should take note that it could/might happen in the future. OR if the lease is sold, then you will be bound by it and a company that your have never dealt with could theoretically come in an harvest these minerals. ONCE AGAIN, this is unlikely to happen, but it could---so be aware and have an attorney review your lease.

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Permalink Reply by Har C2 on August 31, 2008 at 4:21

Catch all LEASE LANGUAGE---EXAMPLE: (counteract the hidden language)

ENTIRE AGREEMENT: This is the entire agreement between the parties which only affects and is limited to the property and mineral rights as delineated hereinabove, more particularly the property described in Paragraph ______ of this lease. This agreement does not extend to any property or mineral rights acquired after the execution of this lease agreement. More particularly, this paragraph supersedes any other paragraphs contained herein containing language to the contrary.


THIS IS NOT LEGAL ADVICE. This is a very simplistic clause. A Louisiana lawyer should create a paragraph which covers this type of situation, on your behalf. Please hire a Louisiana lawyer to address this concern.

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