When i bought my property the mineral rights came with it , the land was already leased for 3 years with a 2 year option after that , the 2 year option came about and was paid to the prior owner after i bought the land . when the company who leased it was notified about my lease they said they paid the lease to previous owner , this was after i bought the land they paid him . when asked about this they said from now on any royalties will come to me . in there contract they state that if there is a legidement offer made for the land to lease it they will either lease it for that or release the lands lease to whoever is offering the money . does anyone know if this applies to them since they are the ones offering alot more for the leases there now . seems like i read where a guy made them release his property because they were offering more money in his area . can anyone help me with this . the only problem i have is someone else got money that was supposed to come to me , and now this lease company is claiming they have my land leased .. thanks
This is a good real life example of why you should always notify the lessee of any changes in ownership. It is important to remember that it is the mineral or royalty owners job to notify the lessee, and/or operator of ownership changes.
By your own admission, the lessee paid the previous owner, prior to your notification of the ownership change. They are not at fault.
You could probally file a claim against the previous owner for the lease renewal money though.
As to your other question, it sounds like you are describing a favored nations clause. However I can not make an educated response without seeing the leased.
That being said, if they paid the renewal to whom thay believed in good faith was the rightful lessor, the lease is still good.
They don't keep running title for ever, think what that would take out of your royalty checks. They didn't look for nothing when the option was extended, they had a contract with the one that had the property before you so that means that it is top in the pecking order of things. It is your responsibility to notify the operator of the well that the mineral interest has changed. Real estate abstractors don't provide this information in a normal title search for a mortgage. Many real estate abstractors would be completely lost when it comes to mineral title.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More