Transferring, selling or gifting a gas lease to a family member


What are the steps involved to transfer, sell or 'gift' a mineral lease to a family member.

Lease is in Michigan, owner lives in TX.

Dear Mr. Smith,

If you want to transfer title to the minerals forever and ever, a standard type mineral deed should suffice.

If you want the minerals to transfer ONLY as long as the lease is in existence, then you would need what is called a term mineral deed, with the term tied to the existing lease (and/or renewals of that lease, if that is what you want).

After the mineral deed is prepared, executed and acknowledged, the original must be filed in the county property records of the same county wherein the minerals are located.

Then a certified copy of the filed mineral deed should be sent to the Operator of the lease for them to amend their records.

Remember that gifting could have tax implications as to Federal and State Income Tax law.

Best wishes,

Buddy Cotten