Lessor died a year into 3-year lease

Oil and Gas Leasing Help
1

My great-aunt held mineral rights in Hughes OK. My father and his sister, both living in Arkansas, inherited them. My aunt died without a will and they passed to her husband. They had a joint family trust, but the mineral rights were not deeded or conveyed into the trust. He signed a 3-yr lease with PetroQuest last year, and passed away recently. Intestate succession, I am told, dictates his share of the minerals go to his surviving siblings or their children if they're deceased. Here is my question: does that lease END on the date of his death, and thus allow the successors to lease or sell their shares? Or, do those other family members have to wait until the end of the 3-year lease to pursue it? The lessee is PetroQuest. -KML in ARK

2

The lease does not terminate at the end of the lessor's life. The mineral ownership, burdened by the ogl, is owned by his heirs. As to the sale of the interest, the heirs, if they have title can sell their interest, but the interest is still subject to the oil and gas lease.

3

Thank you Mr Dowd for your reply. Since I served as my uncle's POA and have copies of those leases, his brother has requested copies of the leases. Is this a good idea, or should I direct him to the landman of the oil company?

4

Obviously, I don't know the particularity of why you might not want to give him copies of the ogls. But they are public record, so they are available for him (and the world) to view. So, I would probably err on the side of being courteous and send him copies.

5

They might not be public record if only a memorandum was filed.

6

Thanks again, Mr Dowd, for your explanation. Unless he sells them at some point, my father's mineral rights will pass down to myself and 2 others. Living out of state, this forum has been a valuable source of information to me!