landowner

Uncertain mineral rights

A number of discussions on this site have involved people who were told after they signed a lease that they didn't own the mineral rights. There have also been cases where someone doesn't think they have mineral rights, but the lessee tells them they do own the rights and offers a lease.

I know some leases have a clause requiring the lessor to "defend the title," i.e. pay the lessee's legal expenses in case of disputes.

This sounds really dangerous.

Is it common to sign a lease that says, in essence, "I convey any mineral rights I own for this property. I don't claim to own these rights. I'm not responsible for any damages if it turns out I don't own these rights."

i.e. lessee does the legal stuff regarding mineral ownership and I don't have any responsibility if they get it wrong.

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Oil & Gas ProPermalink Reply by The_Baron on August 18, 2009 at 7:41
The point I was making is that even with the no warranty clause, you might still be on the hook.

Oil & Gas ProPermalink Reply by The_Baron on August 18, 2009 at 7:42
In the above case, there was a no warranty clause, but the lessor still had to return the money.

landownerPermalink Reply by Mac Davis on August 18, 2009 at 11:34
You're probably still in a better position in court.

Wouldn't you agree:

Not having "warranty" clause is better than a warranty clause.
A specific "no warranty" clause is better than simply not having a warranty clause.

Unfortunately, nothing is safe in court these days.

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