landowner

Who gets the royalty?

My brother signed a lease in 1994 and is Held By Production. On his lease he added language that directed all payments, royalties, rentals, etc due under the terms of the lease be paid to our mother.

My brother recently donated this property to his 3 kids. He did not reserve the minerals and made no mention of the minerals or the lease in the donation.

Does our mother still have the right to receive royalty from the well and future wells?

Thanks

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 27, 2010 at 3:53
Yes

Oil & Gas ProPermalink Reply by The_Baron on August 27, 2010 at 4:15
To expand on Two Dogs's answer:

Any future transfers will be subject to the original lease.

landownerPermalink Reply by Mike Tomlin on August 27, 2010 at 4:26
Interesting. THANKS!

I thought the minerals/royalties would transfer to the new owners without a reservation....

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 27, 2010 at 4:29
The minerals transfer but the money stays with mom until her death or the well stops producing and the lease dies.

landownerPermalink Reply by Mike Tomlin on August 27, 2010 at 5:19
Thanks for the clarification.

Why doesn't the royalty from every lease that is HBP stay with the lessor when they sell the property without retaining minerals if all transfers are subject to the original lease.

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 27, 2010 at 5:33
Without a mineral reservation the minerals transfer with the property subject to the conditions of the lease. When the lease dies the conditions die also.

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