Who retains entitlement to oil and gas royalties before a foreclosure sale?

The original owner of the mortgaged property retains entitlement to oil and gas royalties before a foreclosure sale because the rights to the mineral interests, including royalties, are typically tied to the ownership of the land. Unless there has been a specific transfer of those rights, the original owner maintains those rights. In many cases, the rights to oil and gas royalties are considered a property interest that remains with the owner even if the property is under mortgage.

During the foreclosure process, the bank holding the mortgage may have an interest in reclaiming the property itself to recover the owed funds, but rights to royalties do not transfer automatically. They are viewed separately from the mortgage rights. Furthermore, while the new owner of the property may eventually receive the royalties after the foreclosure is completed, the entitlement remains with the original owner until the property is officially transferred through the foreclosure process. Local government entities typically do not have any claim to oil and gas royalties unless stated in specific laws or regulations.