Royalty Deed

General Mineral Rights Discussion
1

Have a Company interested in purchasing my NPRI. Not selling, but the verbage has me wondering. Grant, Bargin, sell and Convey all of the royalty paid and to be paid? Does this mean that somehow there is money out there that has not been claimed?

2

There may well be money unclaimed. What might be of more interest to you is you would need to pay them any money you have already received in royalty, which may be equal to or greater than the amount you are being offered for your interest.

3

Theresa,

From a practical point of view, the royalty you are selling was created by a lease you signed. To be clear, the deed should refer to the lease by recording data, and the Royalty Deed should must have an effective date. Otherwise you may be selling all future royalties regardless of when they are created. If the lease you signed has a pugh clause and you are selling the leasehold, not just the royalties generated by the lease, you should get a mineral lawyer like Wade Caldwell to make sure the Royatly Deed accurately describes the limits of the sale as you see it.

Gary L Hutchinson

4

Thank you. I have not signed any lease because I have no executive rights. I do not wish to sell what little royalty I have. I was just curious about the offer.

5

There could well be accumulated royalties. It is my understanding -- and I have structured deals in this way -- that monies in suspense are conveyed by a Bill of Sale accompanied with a deed to the property.

In all likelihood, there is no money in suspense. There is likely dollars in arrears waiting for a check to be cut. That is perfectly normal. Royalties are not paid the same day that the oil company gets a settlement check from the sale of hydrocarbons.

Best,

Buddy Cotten

6

I have never recieved any royalty. I just became aware of the interest about 2 years ago, as I am a heir. My Great Grandmother and her 2 siblings retained 1/4 minerals. I have noticed on the RRC that there are 2 permited well sites on this acerage (297) the whole of the plat for the permitted wells. I do not know how to proceed. I have sent the affidavits of heirship but don't know what to expect? Any response would be welcomed.

Thanks,