11.016 Mineral Documentary Tax Due on Lease Amendment

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Requirement 11.016

Mineral Documentary Tax Due on Lease Amendment

 

 Mineral Documentary Tax Due on Lease Amendment:  John Q. Owner granted an oil, gas, and mineral lease dated November 9, 2006, and recorded in Real Property Book 1, page 1, covering an undivided three-fourths interest in the captioned property to Lessee, Inc.  A mineral documentary tax was paid on the interest covered by that lease.  By instrument dated November 9, 2007,  and recorded in Real Property Book 2, page 1, John Q. Owner  amended the original lease to Lessee, Inc.,  to cover the entire mineral estate underlying the captioned property.  This amendment caused the original lease to cover an additional one-fourth interest in the mineral estate underlying the captioned property.  The abstract shows that Lessee, Inc.,  did not pay additional mineral documentary tax upon the additional interest it acquired by virtue of the amendment.

 Requirement:  Pay the mineral documentary tax due upon the filing of the amendment to the oil, gas, and mineral lease from John Q. Owner  with respect to the additional one-fourth interest in the mineral estate underlying the captioned property and any penalties and interest due on the unpaid tax.

Copyright 2011 by Edward G, Hawkins. All rights reserved.