Nazar v. Thexton (In Re Thexton)

MEMORANDUM OF DECISION

JAMES A. PUSATERI, Bankruptcy Judge.

In this chapter 7 proceeding, the trustee has filed a complaint seeking turnover of the unaccrued royalty interest under an oil and gas lease. The trustee and a creditor have filed objections to the debtor’s exemption of his unaccrued royalty interest. The matters are joined for the purpose of this decision.

The issue which must be resolved is:

Is a lessor-mineral owner entitled to an exemption for an unaccrued royalty interest in unsevered oil and gas arising from a lease of oil and gas beneath surface homestead real estate, where the…