What Happens to a Mineral, Gas, and Oil Lease When the Lessor Dies?
Full Question:
Answer:
The answer will depend on the terms of the contracts and deeds involved, such as the duration of the mineral lease and the effect of the death of the lessor. Such a lease often contains terms that it will transfer to the lessor's heirs and successors. In some cases, the lease will expire on the death of the lessor. We strongly suggest you contact a local attorney who can review all the facts and documents involved to ensure you don't get ripped off.
The mineral estate is a separate interest in land that can be severed from the surface estate. With regard to an oil and gas lease, a contract between mineral owner, otherwise known as the lessor and a company or working interest owner, otherwise known as the lessee in which the lessor grants the lessee the right to explore, drill and produce oil, gas and other minerals for a specified primary term and as long thereafter as oil, gas or other minerals are being produced in paying quantities. This lease gives the lessee a working interest. The oil and gas lease is granted in exchange for royalty payments to the lessor. In some cases, a lease will allow an assignment of those rights. If the surface owner is has no interest in the oil and gas rights, and is not a party to the lease, it will depend on whether the lease states the rights may be assigned or not.