AboutLaura M. FitzGerald, CPL Expertise I can answer all questions related to any oil and gas leases, mineral sales, pipeline right-of-ways, LA Dept of Conservation Units; negotiating with landmen for leasing your property, assisting in locating owners of suspended funds.
Experience 26 years in the field and owning my own land services company; being a royalty owner, and participating in drilling wells
Organizations American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Women's Business Enterprise National Council (WBENC)
Education/Credentials Certified Professional Landman, attended LSU, Notary Public
You are here: Experts > Industry > Oil/Gas > Oil/Gas > Question concerning Oil, Natural Gas, and Mineral Rights Lease
Oil/Gas - Question concerning Oil, Natural Gas, and Mineral Rights Lease
I'm not sure where to start, but here goes. My grandfather (along side 8 of his brothers and sisters), own the mineral rights to land in Lafayette County Arkansas. According to the Royalty Conveyance letter that my mother has for him, this land consists of 120 acres or more. About 30 years ago, his mother signed a lease agreement to a petro chem company to drill for oil, gas, etc. To this day, my mother continues to get royalty checks for my grandfather from the Petrochem company, siting how much oil was drilled, and the profits made from this activity (which have totalled 100's of thousands of dollars (per session), yet my grandfather only gets $1.00 or $2.00 royalty checks. We are needing to know:
A). If the lease agreement still stands after these years, or if we have the right for re-negotiation.
B). If we should pursue legal action
Please let me know. We believe that after all these years, that the lease agreement with this company should be re-negotiated.
Answer Well, I'm glad you started here.
First, it's not clear to me and I need you to clarify something:
You wrote that: "Your mother gets royalty checks but your grandfather, who owns the mineral interest does not receive any royalty payments."
Did your grandfather donate his mineral interest to your mother? How did she become entitled to receive the royalty payments she is receiving?
Unfortunately, a lease can be held by production as long as it has been in continuous production, regardless of how many years the lease has been in effect. As long as the current Lessee (the holder of the lease rights) has not violated any of the conditions on which the lease is based.
In my opinion, there is no legal action to pursue as long as the lease has been held by production all these years.
Again, if you will clarify the situation above, it may bring a different factor into the situation and I will be happy to advise.
