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Permalink Reply by John Avatar on October 31, 2009 at 5:42

You are correct in assuming the servitude would expire after ten years of prescription, unless otherwise interrupted. Upon expiration of the prescription and reversion of the mineral interests to the respective owners of the lands previously affected by the servitude, the owners have a choice to create a new servitude, whereby you convey your brother 35% and each child 10% of the minerals under the tract in which you own 100% of the minerals and surface and you and your brother as co- tenants, convey 35% of the mineral interest to each other and jointly convey 10% each to the children under the tract in which your brother and you own an undivided 1/2 interest each in the surface and the minerals.

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Permalink Reply by William W. Lynn on October 31, 2009 at 12:36

Thanks for the explanation. I think it said what I had been told.....after ten years of ownership of the property, I will then own the 53 acres AND 100% of the mineral rights attached to that property, and
will also have a 50/50 ownership of the other parcel and the mineral rights attached to it. If one or both of the properties are leased before the drop dead date, the revenues accruing from that transaction and any royalties earned from production would be divided among the five parties
35/35/10/10/10 as per the will of my father's estate. I would assume any continuing royalties that might be paid after the ten year period would fall under the five party division as per above.
The option to renew/extend the five party division once the servitude expires does not really appeal to me right now.

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Permalink Reply by Checkmateking on November 1, 2009 at 3:27

You want to cut out your kids?

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Permalink Reply by William W. Lynn on November 1, 2009 at 4:08

Only one of the kids is mine. Primarily I want to consolidate any income from my property to my side of the family. My daughter will eventually inherit the land and whatever income might be derived from it, and my brother's children will inherit his share. As things stand now, even though I own almost all the property, I would get only 35% of any income. If it leases before the end of the servitude I will be more than happy to abide by the terms of the will. If nothing occurs to interrupt the servitude and it expires, then I will abide by the terms of Louisiana law.
As I mentioned before, my father stayed up to date on that sort of thing, and I believe he was aware of the implications when he made out his will. Back then, the kids were in college and he probably thought the land would be leased as it had been in the past. In fact, a female landman approached us while my father was dying in the local clinc and he signed a three year lease even as he was expiring. The lease money was divided as he had specified in his will, and as long as the servitude is in effect it will continue to be.

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Permalink Reply by Dion Warr, CPL on November 1, 2009 at 6:24

William:

Just remember, that unless you stipulate otherwise within the confines of the lease (particularly as to royalties), royalties are paid to the mineral owner proportionate to their ownership. Just because the lease bonuses are paid in the 35/35/10/10/10 manner in the seventh year of the existence of the servitude(s) created by the will does not mean that the royalties paid on a well spudded after Year 10 (e.g., servitude(s) prescribed) would be paid in a similar manner. The title attorneys would direct the operator to pay the royalties to the mineral owner(s) at the time that production is established, not in the manner of division at the time that the lease was executed.

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Permalink Reply by William W. Lynn on November 1, 2009 at 7:21

Thanks for that bit of information. With such a relatively small tract of land, any royalties would be shared with surrounding landowners anyway, so the idea is to (1) get as much revenue as possible from any lease and subsequent production that might arise and (2) show my daughter that it is really in her best interest to not get greedy and want 10% now when she could inherit 100% eventually. The neice and newphew barely know who I am, so if they end up splitting 50% of the acreage my brother and I jointly own, then so be it. Regardless, it is a moot point until some kind of leasing activity happens, either in the next four years, or after the servitude expires.

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