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Permalink Reply by Dr. X on March 24, 2010 at 10:26

One cannot retain what one does not own. In other words, all that you currently own are the surface rights thus that is all that you can sell. You would have to wait until the prior mineral reservation expires, that being the end of the 10 year prescriptive period, sometimes during Feb 2011. At that point you would own all of the surface rights as well as all of the mineral rights and then you can sell the surface and retain all or a portion of the mineral rights.
Of course, all of this depends on the prior mineral reservation on your property not being drilled on or all or a portion of the property not be situated in a producing unit. If your property were to be used as the drill site, the running of prescription would be interrupted and the 10 year prescriptive period would begin anew. If any portion of your property is included in a producing unit that was drilled from a location other than your property, then the prescription as to that portion of your property situated within the producing unit would be interrupted and a new 10 year prescriptive period begins. The minerals reserved on that portion of your property situated outside of the producing unit would revert to you after Feb 2011.
I know this is not the answer that you wanted to hear but this is the way it works.

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Permalink Reply by Florida Ginnie on March 24, 2010 at 10:59

Ok. This is why it is confusing I spoke with the lawyer in gas and minerals field. He said He could record the deed stating General Reservation of any and all Minerals. Thank you for helping, I really do appreciate it. What should I do now??????

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Permalink Reply by Randy on March 24, 2010 at 11:28

You can put it a reservation on the deed Ginnie, but it won't mean anything because you don't currently own them to retain them.

You have a few options: 1. sell the property the the new owner will get the minerals next year.
2. keep the property and hope there is no production in the next year.

Maybe someone else can give you some additional options, but that's pretty much it.

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Permalink Reply by Dr. X on March 24, 2010 at 11:42

I cannot advise you what to do. I am a longtime landman/abstracter, not an attorney. Yes, the attorney can put a mineral reservation in the Act of Sale if he wants to but the fact remains that right now, today, you do not own any of the minerals under your property and you won't own any of the minerals, absent any drilling or unitization affecting your property, until one day in Feb 2011. So if you sell the property prior to Feb 2011 and reserve all minerals, the mineral reservation is moot since you do not own the minerals. And come Feb 2011, the person owning the surface of the property would then own the minerals, absent any drilling or unitization.
Article 76 of the 2009 Louisiana Mineral Code reads:
"Expectancy of extinction not an article of commerce. The expectancy of a landowner in the extinction of an outstanding mineral servitude cannot be conveyed or reserved directly or indirectly."

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Permalink Reply by Florida Ginnie on March 24, 2010 at 12:10

Okay Guys, so how is the gas and proposed leases for next year? How is the drilling going? Give me the gibs on the shale for Bossier. Anything? Then I will have some inclination with my GUT what to do on this matter. Do appreciate all your brains. Thanks much.

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Permalink Reply by Skip Peel - Mineral Consultant on March 24, 2010 at 12:14

Ginnie. No one can give you a good answer without knowing the exact location of your minerals. Please provide the section-township-range.

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Permalink Reply by Florida Ginnie on March 24, 2010 at 12:23

Sec. 3 township n. 18 range 12 and I still do not think there will be anything conclusive after giving you this info. I have several offers telling me they do not care about the minerals and just want the surface. Why do i NOT believe them nor The attorney.???

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Permalink Reply by Skip Peel - Mineral Consultant on March 24, 2010 at 12:37

There is no Haynesville Drilling Unit for your section. Chesapeake has units in Sections 13-16 which is approximately two miles south of you. If you do not need to sell now, wait. Much will be revealed this year and you will be in a better position to make an informed decision.

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Permalink Reply by Florida Ginnie on March 24, 2010 at 12:44

Thank You................Have A Great Evening.

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Permalink Reply by Florida Ginnie on March 24, 2010 at 12:58

What if i do lease-option for 1-year at end of year money paid in payments place towards purchase?Since i am only leasing and not selling.

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Permalink Reply by Skip Peel - Mineral Consultant on March 24, 2010 at 13:05

You have nothing to lease as you do not own the minerals. There are only two options: 1) Sell now surface only, or 2) Wait for the minerals to prescribe to you, if that happens, and sell then.

Permalink Reply by Florida Ginnie on March 24, 2010 at 13:25

I was asking because one person wants just the land to rent out the surface not minerals to put horses on and put up a fence around them. He would be a care taker for these horses and get paid for it. So I was thinking where some times people go into a contract for lease-option they call it. They pay me with interest and a portion goes towards their down payment at whatever time frame you agree on let's say one year, at end of year we have a closing and it get's recorded with the title and they cannot have minerals in the 1-year if no production reverts to me for it will still be in my name on the deed, at the closing after this one year passes I can then hold it and record it minerals resevered.??? Just making a final decision here. Your so helpful and to the point! Thanks again........Yours truly

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