Oil/Gas/lease money
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Question
Who gets the lease money? Surface owner, mortgage owner, or mineral rights owner? The minerals are shared 50/50 by land purchaser and the original land owner. The land is owner financed. The new owner(buyer)wants to know why he did not get any of the lease money.
This depends on which state you live in; in TX the minerals and surface are either held together or separated at some point in time. Once they are separated they will remain separate forever.
Typically, the mineral rights owner gets the lease bonus money and any mineral royalties and the surface owner gets any money resulting from "damages" (damaged roads, lost trees, etc...).
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Answers by Expert:
David Traugott
Expertise
I can answer questions related to the technical issues associated with the drilling and completing of oil and gas wells; very familiar with the cementing process, LWD tools and Coiled Tubing operations. Limited knowledge of mineral rights and/or royalties.
Experience
Fifteen years working as an engineer in the industry both in the field and in the office. Field locations include offshore, land, and overseas. Office locations include Lafayette, LA and Houston, TX.
Organizations
SPE, AADE, IADC, API, IEEE, ICoTA
Publications
SPE Drilling and Completion Magazine, World Oil, Harts E&P.
Education/Credentials
Bachelor of Science in Electrical Engineering, UL Lafayette 1995. Strategic MBA, University of Houston-Victoria 2010
Past/Present Clients
Major and Independent Oil and Gas Companies.
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