Energy Industry (Oil & Gas)/Royalty Deed


What exactly is a royalty deed? How does it effect the land owner ? If,a company is acquiring royalty interest in an area you own a mineral interest in the state of Louisiana Township 17 ssouth ,range 17 east in Terrebonne Parish sections 38, 39,101 and/or 105.

Minerals (oil and gas anyway) are not actually able to be "owned" separately from the land in Louisiana until they are reduced to possession (by drilling), thus someone wanting to buy your mineral rights is really only buying the right to reduce them to possession for a period of time since the right to actually own them can't be separated from the surface estate permanently. I think that's why you got offered a "royalty deed" rather than a "mineral deed." If they "buy" them, but don't reduce them to possession or actively work on doing that for ten years, then the rights will revert back to the surface owner, which I assume is you. If they DO drill a well, then they will own the right to produce (and reduce to possession) for as long as there is production, which could of course be many years.

You can easily "Google" for more detailed info on "mineral prescription in Louisiana" to fill in what I'm saying here. However, one (I think) very good explanation of the difference between Louisiana and other states, written by attorney David L. Pratt II and published in the Volume 16, Number 1, Fall 2009 Texas Wesleyan Law Review, can be found HERE The article states, in part, that:

"Louisiana law recognizes only two types of estates in land: one being a corporeal ownership of the soil, and the other being an incorporeal servitude for use of the soil. There can be no separate estate in, or severance of, the minerals underlying a tract of land because minerals in place are not susceptible to absolute ownership. Consequently, a sale or reservation of mineral rights does not vest in the purchaser or reserving party an “estate” in the minerals; it creates only a right to go upon the land to explore for, develop, and produce the minerals. In such situations, the party purchasing or reserving the minerals is vested with a mineral “servitude,” which is “the right of enjoyment of land belonging to another for the purpose of exploring for and producing minerals and reducing them to possession and ownership.”

I would suggest anyone interested in this subject read the whole article.

Hope this helps you out.
Frederick M. "Mick" Scott CMM, RPL
The Mineral Hub  

Energy Industry (Oil & Gas)

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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written articles of interest to mineral rights owners which have appeared in various industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and land and title work over the past ten years, and have also worked as a professional landman. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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