I was referring to the deed itself. You mentioned an attorney. He disagreed with the landman as well?
Quite often, the instrument draftsman will specifically address the bonus issue in the deed. If it doesn't, and it's 50/50 across the board, I wouldn't see why they both wouldn't split bonus. I think the royalty is a given.
The wording of the instrument is paramount. The 4 corners rule.
I think you asked my opinion, so I offered it. They say that a bartender is a poor man's psychiatrist. This site is a poor man's lawyer, but not really a substitute for actual legal advice.
Bigfoot said:
Dave:
Thanks for your reply and yes I should have done a better job of spelling out what I was told; but, I just wanted to leave the question open and see what your answer would be. The Executive Rights issue has been the furthest thing from my mind since I thought I totally understood it, then a landman came a courting trying to lease some of my property and we got to talking about one of the people in a group of landowners (neighbors) that I am working with. They actually have the scenario I quoted above. 50%/50% and Executive Rights, nothing else related to minerals in the deed. My understanding was that the new owner with Executive Rights would negotiate the lease; but, each would get their share of the bonus as well as the royalties. When discussing this with the landman, he said that I was not correct, that the person with the Executive Rights would get all the bonus money; but, would have to share the royalties, end of discussion. I questioned him; but, didn't put up an argument. Just figured that I would address this issue as a better understanding became necessary. Then I saw this post today and thought that this might be a great issue for everyone to see and all the while get me straight.
Thanks again for all your help and understanding.
Dave Quincy said:
For the most part, that is true. There have been more than one case where a land owner has said, "There ain't no f***in oil company gonna drill on my land." They then stand in front of the gate with a shotgun or maybe an AK-47. When that happens, the trucks turn around. However, the oil company will then get an injunction that is served by the local sheriff with some possible back-up. At that point, the landowner has to throw in the towel, and allow the drilling to commence. This assumes that a valid lease is in effect.
tony b. said:Thanks for the information guys. From doing some additional investigation of my own it seems as though if I do not get any mineral rights from the purchase of this land, I get no say so in what happens about any drilling set backs, etc. that occur in the future. I see how a land owner's desires can be put in jeopardy.