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Oil/Gas/Lease transfer?


I have a conveyancing question.  If you are a fee owner and you sell your lands without reservation,while they are under a lease in its primary term, when the lease gets extended, who gets the renewal bonus?  Thanks.

If you sell your land without reserving the mineral rights then the oil lease and all its benefits transfer to the new owner. This would include any royalty payments that resulted from the drilling of a producing well during the primary term.

If there was an extension option included in the original lease, then any bonus due from its exercise would be payable to the new owner if you didn't reserve the mineral rights when you sold the land. It would however be up to the new owner to inform the lessee that the property had changed hands.

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


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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 several articles which have appeared in various oil and gas 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 landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. 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 (NARO); American Association of Professional Landmen (AAPL)

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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