Replies to This Discussion

Oil & Gas ProPermalink Reply by Randy on August 18, 2008 at 12:33

No, typically when I see leases like this, it stipulates in the lease that no surface operations may occur without consent of the current surface owner.

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landownerPermalink Reply by Margaret Wren on August 18, 2008 at 12:40

He has no mineral rights the previous owner does. There are producing wells in the section (the prev. owner is getting monies) and he has nothing on his land but some timber and not much of that because the previous owner had it timbered out. He bought the land at a good price and was curious is all.

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landownerPermalink Reply by P.G. on August 18, 2008 at 12:45

How was it worded when the previous owner reserved the mineral rights. Does it say the seller can go anywhere on the property, any time, do anything it takes to explore and retrieve the minerals? If so, the buyer should have considered that before he bought the place!

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on August 18, 2008 at 14:07

I have a lessor that just sold 45 acres, granting to the buyer the right to say if a well could be drilled on the property. I bought a shallow lease with granting permission to drill on the property, after my lease a company bought a deep rights lease with the same granting language. Both leases are recorded before the sale. The new landowner may have problems with this in the future if one or both cos want to drill on the property.

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landownerPermalink Reply by Margaret Wren on August 18, 2008 at 14:18

Thank you everyone, I will pass this information along to him.

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Permalink Reply by Carver on August 18, 2008 at 14:23

Hi, Jim. Are you saying that a restriction against surface use in a mineral sale or lease isn't any good?

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Permalink Reply by Carver on August 18, 2008 at 17:59

OK. Fair enough. Would you mind giving your opinion about my question?

A restriction against surface use in a lease or mineral sale... it's valid and enforcable in your opinion?

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Permalink Reply by Mike Forgason on August 19, 2008 at 3:06

Without specific language in the deed restricting mineral exploraton, the mineral owner has a right to capture the minerals beneath the sold surface. His lease may indeed stipulate that no surface operations are to be carried out, but without that, he has, more or less, a right of way (loosely used term). Should they need the surface, the surface owner can certainly enter into a surface use agreement with the operating company and generally speaking, the operating company will not drill on a tract without an agreement with the surface owner (bad and risky business).

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landownerPermalink Reply by P.G. on August 19, 2008 at 3:45

The buyer is still at the seller's mercy if there aren't any restrictions protecting the buyer's surface rights. The property could be crisscrossed with roads, pipelines and drilling pads if that's what it took to get to and market the minerals.
It's certainly something to consider when negotiating to purchase a property!

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