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Permalink Reply by Skip Peel - Mineral Consultant on December 8, 2017 at 5:34

The mineral estate is dominate over the surface estate (LA).  Therefore if the conveyance of the surface contains a reservation of the mineral rights and does not specifically prohibit surface use, the surface owner has no right to hinder exploration and production of the mineral right.  In practical terms, this is usually not a problem for small acreage tracts with residential structures in the days of horizontal drilling.  Operating companies do their best to stay a reasonable distance from inhabited structures and out buildings.  A pad is one thing but what you really don't want is a compressor station near your house.  If you suspect that may happen, get your neighbors together and hire an experienced O&G attorney pronto.  IANAL.

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Permalink Reply by fred on December 8, 2017 at 5:43

Thanks for your response. It seems that a person buying a small timber tract of 20 to 40 acres might be discouraged from making a purchase knowing that 3-4 acres for a pad and then a road at a bad location might ruin the whole property. I hope buyers are aware of this when they buy property whereby the Act of Sale simply states "All Minerals Reserved",  Some of these buyers are looking for timber, hunting grounds and a future homestead. Their dream property could easily become a nightmare.

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Permalink Reply by Skip Peel - Mineral Consultant on December 8, 2017 at 6:13

Most timber companies learned how to handle the purchase of land and the severance of minerals long ago.  It's private owners who would like to grow pines but have insufficient experience that could be left vulnerable.  The purchase of land for whatever purpose should include the input of an experienced attorney that can help craft deeds to protect the surface owner going forward. 

I encourage all buyers to get a "no surface use" clause in their deed if possible.  Actually such a clause has value by providing the buyer with future options.  In some instances surface owners might find benefit in negotiating surface use for mineral development.  An owner with 40 acres might be willing to allow surface use on a small portion for reasonable compensation and in the process also get a road that benefits the surface owner and/or increases the value of the land.  In such a case the surface owner can negotiate set back distances, future uses for a pad or restrictions of use and other requirements that protect their interest.  Here again an experienced O&G attorney comes in quite handy.

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Permalink Reply by fred on December 8, 2017 at 10:06

There is a large bid package for timber land going out right now that has language in it that specifically states that the bidder understands that he/she is bidding on land that the seller reserves minerals and surface rights to obtain minerals under Articles 11 and 22 of the Louisiana Mineral Code. In this case, the irrevocable offer (per the bid package) would be subject to these conditions with no negotiation. I believe this makes persons possibly not wanting to make a bid, or to make a very low bid, particularly for small parcels.

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