Chapter 42 - § 42.9 • CONCLUSION

• Jurisdiction: Colorado

§ 42.9 • CONCLUSION

There are a myriad of legal issues that practitioners should keep in mind when dealing with mineral, royalty, and leasehold interests in Colorado. This chapter, while intended to summarize some of the more frequently encountered issues, is far from comprehensive. In addition, the unique facts often involved in oil and gas transactions frequently dictate how to proceed. Accordingly, practitioners should take great care in determining all of the legal issues involved. That said, the following are some general suggestions that should be taken into account:

1) Conveyances/Reservations: When drafting a conveyance involving a mineral, royalty, or leasehold interest, it is important that the appropriate amount of specificity be included to ensure that the intent of the parties is satisfied. This includes:

a) Specifying what minerals are included within the scope of the conveyance/reservation;
b) Specifying whether the conveyance/reservation is intending to impact a royalty interest, a mineral interest, or both;
c) Specifying, either in terms of the "grantor's interest" or in terms of "the undivided whole mineral interest" precisely what fraction or percentage an instrument intends to convey/reserve; and
d) All conveyances/reservations of a mineral, royalty, or leasehold interest must be recorded in the county records to

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