I saw a segment on KTAL-TV today stating that unless you own your property free and clear, you do not own your mineral rights and do not have the right to lease them. Is this true? If you have a mortgage on the property does this mean you miss out on the bonus money and leasing opportunities?
I have no idea where they came up with that intel but I believe I would switch to another channel. If you have to own your property free of mortgage then there are a lot a rebates due to O & G companies that leased in my area, because few owned their places outright that have leased. I believe this topic has come up in another segment of this site.I'll try to remember where and post it for you.
I'm almost positive this information is false. When I leased my land in 2006 we signed the lease at the bank where my land is financed with the banker sitting right there! The only thing he said was he hoped I got a good well out of it.
I didn't see the whole segment, but KTAL had a correction on their morning news show saying that you DID own your mineral rights even if your land was mortgaged. Really makes you wonder about their thoroughness to have said something without knowing all the facts.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More