Legal Question in Real Estate Law in Texas

Gas Leases

I own a residence in the Barnett Shale area and most probably will except a gas lease offer from an oil and gas company. At some time in the future, I want to pass the property on to someone, other than an heir, using a standard warranty deed without reservations of any kind regarding mineral rights. However, at the time this happens the gas lease will be in effect. The question is, when this deed transfer comes about, will the lease and its subsequent royalties be the property of the deed recipient or will it become a part of my estate. If it would become a part of my estate, what should one do to be certain that all the rights from the lease stayed with the deed?


Asked on 4/02/08, 6:27 pm

1 Answer from Attorneys
Eddy De Los Santos Spain Hastings Ward Carey & Chambers

Re: Gas Leases

If the intent is to transfer the property and the royalty payments, this can be done depending on the circumstances surrounding the ownership of the property, the lease agreement, etc. You may be able to use a warranty deed and a royalty deed. However, I would need more information about the property, the ownership, the lease, the royalty payments, etc. to ensure what the best way to accomplish your goal would be.

Disclaimer: This response does not establish an attorney/client relationship and to date, we have not been retained to provide legal representation on your behalf in this matter. The information expressed above is not intended to be legal advice. As legal advice must be tailored to the specific circumstances of each case, and laws are constantly changing, nothing provided herein should be used as a substitute for the advice of competent counsel. Each legal problem depends on its individual facts and applicability of those facts to current law.

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Answered on 4/02/08, 6:51 pm


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