Several family members inherited mineral and surface rights in Reeves Co. When we entered the lease in 2016, we were paid a bonus on what appeared at the time to be the total NMA we owned. Since signing the lease, it was discovered and the oil company lessee helped us to confirm, that we in fact owned a few more NMA than originally thought. Title to those additional acres has been confirmed and the oil co. lessee claims to lease these total NMA. However, we believe they now owe us an additional bonus for the NMA we’ve essentially “added.” The oil company says the bonus is over and done and they don’t owe it. Anyone have thoughts?! They will get 75% royalty interests from mineral interests they never paid a bonus on and which weren’t contemplated in the original lease! Doesn’t seem fair. We think they should pay us the additional bonus money.
Ellen,
The answer to your question will depend on the terms of the oil & gas lease that your family signed. Some lease forms are written so that the bonus payment you received will apply to your total interest in the minerals, whether or not your actual interest turns out to be more or less than expected. The good news is that even if you do not receive a bonus payment for the additional NMA, if there is production, you would receive royalties based on your total mineral ownership.
Most likely your lease contains a legal description which specifies gross acres, more or less. If the additional NMA is within this boundary, then it would unlikely that you will receive additional bonus. The same thing occurs when a section is surveyed and found to contain more or fewer acres than 640. However, this is a reason to not sign a lease which gives a legal description and then adds wording about including adjacent or contiguous acreage outside of the description. That way, if you own acreage outside of the legal description, then you will be approached for a new lease or to add that acreage and receive additional bonus. Be sure to ask for the deeds and chain of title for your records so that you have correct information going forward.