1. Lessor signs lease with Lessee A.
2. The lease contains a consent-to-assign clause and a requirement that if Lessor consents to assignment, Lessee A shall remain responsible for all lease obligations.
3. Lessee A assigns the lease to Assignee A (Sublessee A), the assignment making no mention of Lessee A being relieved of its responsibilities under the lease.
4. Assignee A drills and successfully produces a gas well in the Lessor’s unit but subsequently makes no production payments to Lessor whatsoever.
5. Lessor desires to make a judicial demand for payment of royalties in accordance with:
RS 31:137. Nonpayment of royalties; notice prerequisite to judicial demand. If a mineral lessor seeks relief for the failure of his lessee to make timely or proper payment of royalties, he must give his lessee written notice of such failure as a prerequisite to a judicial demand for damages or dissolution of the lease. Acts 1974, No. 50, §137, eff. Jan. 1, 1975.
6. QUESTION: In light of the assignment to Assignee A, and the fact that Lessee A is contractually responsible to Lessor for lease obligations, to whom does Lessor give written notice of failure to pay royalties…to Lessee A or Assignee A, or to both? Reasoning?
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Permalink Reply by JHH on No. The lease ran out without a rig/production and we got the release... minerals returned. Will lease it again some day... maybe.
Well that worked out real well for you didn't it ??
Ha ha ha, talk about biting your nose to spite your face. Next time (if there is a next time) just let the company assign the lease. Don't be so darn greedy.
Permalink Reply by Andrew on I don't know if I would exactly call JHH's situation cutting of the nose to spite the face. I'd reserve that expression for giving your property away for less than it's worth.
Permalink Reply by JHH on That's right. we "gave it away" when first leased before the big boom in 2008. the company never drilled... and we got nothing for three years. Thankfully we had a good lease with protections and got the minerals back. we learn more and more every year.
Permalink Reply by Melissa Hausam on 
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of) nor local residents appear to have received any compensation for the minerals extracted from their land.
This area has suffered immense environmental degradation…
ContinuePosted by Char on May 29, 2025 at 14:42
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