What happens to a mineral rights lease after my husband's death?

Full question:

When my husband passed away he named me as sole beneficiary to all of his property. I was told that. Since my name was not on the house (purchased before we married) or on the mineral rights lease, which he signed years after we were married, (and my name is NOT on, he said he was a SINGLE PERSON when he signed the lease and the document has that printed on it that he signed) that the lease became null and void after his death, or even before as it stated he was SINGLE when he was not, and that a new lease will have to be signed by me and that the company who held the mineral rights will have to pay me for those rights. And because we WERE MARRIED at the time the lease was signed and I did not sign it, that they still need a lease with MY name on it. True? He passed on 12/25/2009 and the will has been probated and the house is now in my name. As is all of his other property.The gas company told me the lease MUST remain in his name even if the house is sold to someone else. And that I, and future owners of the property, are only entitled to royalties. That the lease he signed is binding as long as their gas well is in operation.

Answer:

The answer will depend on the specific terms of the contracts and deeds involved, including the duration of the mineral lease and its provisions regarding the death of the lessor. Generally, an oil and gas lease is a contract between the mineral owner (lessor) and the company (lessee) that allows the lessee to explore and produce minerals for a specified term and as long as production continues in paying quantities. This lease grants the lessee a working interest and requires royalty payments to the lessor.

In some cases, the lease may transfer to the lessor's heirs and successors, while in other cases, it may expire upon the lessor's death. It is crucial to review the lease terms to determine what happens after the lessor's death. We strongly recommend consulting a local attorney who can examine all relevant documents to protect your rights.

If the surface owner has no interest in the mineral rights and is not a party to the lease, the lease terms will dictate whether those rights can be assigned or not. The gas company may be correct in stating that the lease remains valid in your husband's name, and you, along with future owners, may only be entitled to royalties as long as the lease is in effect.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

It is not illegal to keep a mortgage in a deceased person's name, but it can complicate the estate settlement process. The mortgage typically remains the responsibility of the estate. If the estate has sufficient assets, the mortgage can be paid off. If not, the lender may need to work with the heirs to determine how to handle the mortgage moving forward.