Replies to This Discussion

Permalink Reply by obed w odom on November 11, 2011 at 4:38

RAP,

I am not an attorney, but I don't think just being leased would prevent the mineral rights from reverting to the surface owner after 10 years. Also, production only prevents reversion (prescription) while it continues and then for 10 more years. New production before the 10 years elapse, however, would reset the clock and hold the mineral rights as long as it continues, plus 10 more years.

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Permalink Reply by Skip Peel - Mineral Consultant on November 11, 2011 at 5:13

The ten year prescriptive period begins on the day the suface estate and mineral estate are severed.  I makes no difference if the minerals were burdened by a lease at that time or whether they were leased later.  Prescription is interupted and the ten year clock reset by a good faith attempt to develop (drill a well) whether it is productive or not.  Production suspends the clock until it ceases, then the clock starts a new.

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Permalink Reply by RAP on November 11, 2011 at 7:28

Succinct. Thanks.

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Permalink Reply by The_Baron on November 11, 2011 at 6:10

read my blog on mineral servitudes and prescription

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Permalink Reply by RAP on November 11, 2011 at 7:34

Thanks. Enlightening to a newby.

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Permalink Reply by Abington on December 11, 2011 at 4:37

Where is your blog?

I am trying to figure out if:

In 2011 A sells and to B and reserves minerals for ten years, which would expire in 2021 (no production)

In 2013, B sells and to C and reserves minerals for ten years  (no production)

So if A still owns them, so is B actually just reserving the last two years , 2022 and 2023? Is it possible for B to reserve mineral he does not really own yet?

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Permalink Reply by Skip Peel - Mineral Consultant on December 11, 2011 at 4:43

It's not just production that resets the ten year prescription clock.  Any well drilled, even if it does not produce, resets the clock.  When A sells to B a servitude is created for ten years.  B has no mineral interest  to sell to C as the servitude belongs to A.  If C buys the surface and there is no production or good faith attempt to establish production prior to the prescription date in 2021, then the minerals revert to C as the current owner of the surface estate.

Links to The Baron's prescription blogs follow:

http://www.gohaynesvilleshale.com/profiles/blogs/prescription-and-m...

http://www.gohaynesvilleshale.com/profiles/blogs/prescription-and-m...

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Permalink Reply by Abington on December 11, 2011 at 5:59

Thanks Skip.

So if I understand you,  B is out of the loop in 2021, even if he reserved mineral rights, not held by production or drilling, on the deed. And C would own all of the rights in 2021, not having to wait until 2023 when B ten years of reservation is up.

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Permalink Reply by Watt Keller on December 11, 2011 at 6:11

If A didn't sell the minerals to B then B is out. C takes possession at the end of ten years of the sale from A to B. (2021)

If A sold the minerals to B then B has ten years from the date of purchase to make an attempt to drill or lose the minerals to C. (2021)

Either way the prescription begins from the time the orignal mineral owner/surface owner (A) sells them. The only thing that can change the prescription is the attempt to produce. In your example B could only reserve the minerals for the remaining eight years (2013-2021) if A sold them to B to begin with and A didn't reserve them in the sale.

If A only held a mineral servitude and was not the surface and mineral owner of record at the time of sale to B then the clock began ticking when A acquired the minerals. Interrupted only by an attempt to produce. 

Simple as pie! NOT! ;-)

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Permalink Reply by The_Baron on December 12, 2011 at 11:00

There are other ways to interupt prescription becides drilling a well. Its just less common to see the other ways:

 

A mineral servitude is extinguished by:

(1)  prescription resulting from nonuse for ten years;

(2)  confusion;

(3)  renunciation of the servitude on the part of him to whom it is due, or the express remission of his right;

(4)  expiration of the time for which the servitude was granted, or the happening of the dissolving condition attached to the servitude; or

(5)  extinction of the right of him who established the servitude.  

 

 

§54.  Interruption of prescription by acknowledgment; formal requirements

The prescription of nonuse may be interrupted by a gratuitous or onerous acknowledgment by the owner of the land burdened by a mineral servitude.  An acknowledgment must be in writing, and, to affect third parties, must be filed for registry.  

 

§59.  Suspension of prescription by obstacle

If the owner of a mineral servitude is prevented from using it by an obstacle that he can neither prevent nor remove, the prescription of nonuse does not run as long as the obstacle remains.  

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Permalink Reply by Skip Peel - Mineral Consultant on December 11, 2011 at 6:17

You can't reserve what you don't own.  A owns the mineral servitude until it expires on the 3,650th. day.  B only holds title to the surface estate. 

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Permalink Reply by Abington on December 12, 2011 at 16:36

Thanks to Skip, The Barron and Watt for your information. It is very much appreciated.

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