I'm not sure what you were told. I guess you already know that the executive rights owner is the only one who needs to negotiate and sign the lease. Usually the issues that you address are spelled out in a deed that was drafted by someone who knows what they are doing. A good draftsman does not leave anything to chance or speculation, or subjective interpretation by the title searcher. My take on the facts as you present them is that the non-executive owner could argue that the executive owner should have to pay him for one-half of the bonus if not already split by the landman. I think that one-half of the royalties is a given.
Bigfoot said:
Dave:
My question to some degree goes along with this initial post; but, more specific to one issue. I'm in Texas and my question is about Executive Rights only. If a person retains 50% of the mineral rights and sells his/her property along with the remaining 50% of the mineral rights as well as giving the new surface owner "Executive Rights", what rights go with the Executive Rights here. Nothing else is mentioned in the deed. Does the new owner with Executive Rights negotiate the lease for both parties and then does the new owner with 50% and the original owner with 50% share equally the bonus as well as the negotiated royalties?
I may have been a little windy here; but, a landman that is supposed to know what he is doing told me something about Executive Rights that was much different than I was led to believe by my attorney and for that matter what I believe to be common sense, if there is such a thing when talking about oil leases.
Thanks for all you good input and help!
Dave Quincy said:That is an elaborate answer, but I don't think that it cuts to the chase. Probably the best and most responsive reply to your question is no. There is nothing that you can typically do in Texas to prevent a mineral owner from executing an oil and gas lease if you do not own the minerals. (Or in turn keeping the rig off your land) The reason is that the mineral estate is considered to be the "dominant" estate. There is also nothing incorrect in Mallory's reply.
Be advised also that there are a ton of court cases in Texas that require the intrusion by the oil company that drills the well to be reasonable. Many land owners have filed lawsuits that have alleged the use by companies to be unreasonable or a nuisance. Sometimes they win, sometimes they lose. In conclusion, the ball is actually in your court. You don't have to close on the land if this issue concerns you so much.