Warranty Clause

Oil and Gas Leasing Help
1

Is it correct to assume if you do not own the land but only the mineral rights that the Warranty clause does not apply to you? I am currently in the middle of finalizing a lease for mineral rights I own in Mountrail County, ND. The lease has the following language:

14. Lessor hereby warrants and agrees to defend the title to the lands herein described, and agrees that the Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the above described lands, in the event of default of payment by Lessor, and be subrogated to the rights of the holder thereof, and the undersigned Lessors, for themselves and their heirs, successors and assigns, hereby surrender and release all right of dower and homestead in the premises described herein, insofar as said right of dower and homestead may in any way affect the purposes for which this lease is made, as recited herein.

My family signed a lease for mineral rights we own in Burke County and the Lessee crossed out ‘warrants and agrees to defend the title to the lands herein described’. The lease for Mountrail County still has that language in it. By signing a lease with that language in it am I agreeing to help pay off any mortgage or tax defaults or liens for property owned by another person? Are there any other implied warranties in this language?

2

Janis, "lands" refers to real property, which mineral rights are. The warantee of title would still apply. This is my understanding.

3

Sorry Janis, I was pressed for time before and gave you only part of the answer. If your minerals were severed from the surface, a lien against the surface has no effect on you. If the lien predated the severance, the lienholder would have had to give permission for the mineral rights to be severed and placed beyond their reach.

4

The warranty would still apply. Typically, its used to force repayment of a bonus, if it is found that the lessor did not own any interest.

5

Dear Ms. Biggs,

Striking the warranty clause does little good.

For further information, please go here.

Buddy Cotten