When someone leases to a third party (other than the company that drills the well) and that third party sells or assigns to the drilling company:
a) where do the royalty payments come, the third party or the drilling company
b) who's responsibility is it to uphold the terms, the third party or the drilling company
Basically, once the third party sells or assigns does that remove the third party as a middleman.
Given all of these what if the third party participates in the well? Then any royalty payments to the MO flows through\from the third party.