Anatomy of a mineral deed, part 8 of 11
The existing lease clause in a mineral deed
When the land is already leased, the deed says the grantee takes subject to that lease and whether the grantee receives its share of the payments under it.
Said land being now under an oil and gas lease, this conveyance is made subject to said lease, but covers and includes one-half (1/2) of all of the oil royalty, gas royalty and other payments due and to be paid under the terms of said lease.
What it is
A lease signed before the deed stays in force after it. The deed takes the interest subject to that lease.
The clause usually says the grantee receives its share of the royalty and other payments under the lease. When the lease ends, the interest stays with the grantee and its share applies to the next lease.
What to check
Does the deed say who receives the royalty and rentals under a lease already in place?
- Whether the lease is named, with its recording reference.
- Whether the grantee receives its share of royalty, rentals and other payments under that lease, or the grantor kept them.
- That the share named here matches the fraction in the interest paragraph.
- For payment to change, the operator usually needs the recorded deed. Until title is shown, payments may be held in suspense.
Where it goes wrong
A deed that conveys the minerals but leaves the payments under the current lease with the grantor, which surprises a grantee who expected checks.
See the existing lease clause on the sample deed
Related
We are landmen, not attorneys. This page explains how mineral deeds are usually read. What your deed means can turn on its exact words and on Texas law, and a title opinion comes from an attorney.
Want us to read yours?
Tell us what your deed says and what you want to know. We can read the deed and explain what it conveys, or pull the chain of title in the county records and show how the interest reached you. We read every request and can reply by email.
For a lease, a division order or a check you cannot read, Landman Help works for owners. For a full runsheet or title packet, Landman Services runs the county records.