If the Fay. Play and/or Barnett are any indicator, there will be a ton of newly minted royalty owners who are going to feel like deer in the headlights when they suddenly find that grandpa, Uncle Ernie, or...themselves, are in poor health and have a large check in their hands. A check that Uncle Sam would like a great big bite out of.

If you have leased at one of these high lease prices...please note. NOW, not after the checks start rolling in, is the time to see a CPA or tax attorney and see what you need to do. In my opinion, you need to learn how to manage this stuff before hand, not a hands on experienced (mistake) based method. Setting your mineral interest up in a family general partnership or an LLC may save you thousands in taxes and facilitate transfer of those mineral rights from generation to generation. There are a number of ways of doing it. BUT DON"T MAKE THIS MISTAKE.

Granny still has the old farm in her name. She is 83 and healthy TODAY. The checks come in. Everyone teases Granny about taking a world cruise, etc. 3 weeks later, she suffers a stroke and now lies in a nursing home unable to speak or move....

You get the picture. Taxes are due. The state will not pay for her care except you deed those minerals over to them...etc.

DON'T BLOW IT. Get professional advice from a CPA or Attorney.

BTW, I am NOT either of the above.