Back in November 2014 my fathers mineral rights were finally recorded in McKenzie County North Dakota in my name. I know that I will be expecting some monies that have been held in suspense but dont' know what to expects regarding a lease offer that will probably be sent to me. Will I be offered a lease which might be negotiable separate from others who may have leased on that property, or because these wells were producing before the recording of my mineral rights will I have to go with whatever people were leasing prior to productions? Any help would be greatly appreciated
From your post, it seems that there was a lease in effect with respect to your father's minerals at the time of his death. An existing lease does not terminate with his death, but will continue in effect until the production terminates. You should get a copy of the lease to see the royalty rate and other terms. The check detail should provide the sales volumes and revenues during the period of suspense between your father's death and your title being established. It will include the wells drilled prior to his death and wells drilled after his death.
If your father or prior owner did not sign a lease, then his unleased minerals are open you to lease. You will be able to lease on separate terms. Be sure to include a commitment from the lessee to pay you for the prior production.
Thank you so much for your response. My father actually passed away back in 1973. He was left these mineral rights by his sister. He never did act upon them and lease. I just went through a 2 year probate process to get them into my name. Some other of my relatives might be leasing at this time but I am not sure. My question is: if other owners of portions of this property have signed leases for the wells that are currently producing, how does this effect me when offered a lease opportunity. Hopefully this a bit more clear. Thanks again for you response.
Pupsahl
TennisDaze said:
From your post, it seems that there was a lease in effect with respect to your father's minerals at the time of his death. An existing lease does not terminate with his death, but will continue in effect until the production terminates. You should get a copy of the lease to see the royalty rate and other terms. The check detail should provide the sales volumes and revenues during the period of suspense between your father's death and your title being established. It will include the wells drilled prior to his death and wells drilled after his death.
If your father or prior owner did not sign a lease, then his unleased minerals are open you to lease. You will be able to lease on separate terms. Be sure to include a commitment from the lessee to pay you for the prior production.
Hi Pupsahl -
Unless there are other circumstances I am not aware of, you would have the same opportunity to lease your unleased interests, if any, afforded your cousins.
You said you have some royalties due you that are being held in Suspense, however. That would indicate to me that your interests are producing or have in the past. Your interests may be Held By Production (HBP).
Have you been in contact with the company Operating the Well(s)? You will have to provide them with evidence of any changes in Ownership before they will send you a Transfer Order or a Royalty Division Order.
Also, I am not familiar with North Dakota Law. I hope you haven't lost your minerals due to non-payment of taxes or under some sort of "Abandonment" laws that some states have.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
Thanks for getting back to me Charles
My mineral deed was recorded by the county recorder late October 2014 and was sent to Triangle Petroleum by my lawyer that did my probates in early November 2014. I did hear in January 2015 from a division order analyst that I should be hearing something from them about mid January but still haven't heard from them. I was just trying to gather some information regarding what to expect from them when they do contact me. Regarding the Monies in Suspense and Lease terms. Thanks Again.
Pupsahl
Charles Emery Tooke III said:
Hi Pupsahl -
Unless there are other circumstances I am not aware of, you would have the same opportunity to lease your unleased interests, if any, afforded your cousins.
You said you have some royalties due you that are being held in Suspense, however. That would indicate to me that your interests are producing or have in the past. Your interests may be Held By Production (HBP).
Have you been in contact with the company Operating the Well(s)? You will have to provide them with evidence of any changes in Ownership before they will send you a Transfer Order or a Royalty Division Order.
Also, I am not familiar with North Dakota Law. I hope you haven't lost your minerals due to non-payment of taxes or under some sort of "Abandonment" laws that some states have.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas