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Permalink Reply by Two Dogs, Pirate on August 11, 2010 at 13:15

Nothing was ever spelled out but a "Sheriff's Sale". One would need to know more about the deed. Baron & Dion know what they are talking about but no one knows the deed. I don't understand anything about the original question. I have never seen state property sold at a sheriff's sale but there are many things that I have not seen.

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Permalink Reply by Terry L. Antee on August 12, 2010 at 3:59

The State should not be above the people, if the state owns the land for a period it should be under the same laws as it citizens an retain the minerals for ten years and then they revert to the land owner. State setting itself above the people, needs to be changed.

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Permalink Reply by WHuguet on August 12, 2010 at 7:58

Terry,

Well, there is some parity in the law. When you deed land to the State or it is expropriated, if the minerals are reserved by the private landowner they are reserved in perpetuity (or so long as the surface is owned by the State or a subdivision).

Also, "We the People" ratified the 1921 State Constitution, which prohibited the State from alienating its mineral rights.

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Permalink Reply by The_Baron on August 12, 2010 at 9:24

We the people also ratified the constitution of 1974, which retained this language.

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Permalink Reply by Glenn Taylor on August 17, 2010 at 11:45

All of this brings up a question in my feeble mind. Just how does one determine who owns the mineral rights under one's land? I have looked at my property information in the clerk's office and there is nothing that says anyone owns the mineral rights. Does this mean that I own them, or what?

Permalink Reply by Mac Davis on August 17, 2010 at 12:07

Glenn, unfortunately, there's no centralized registry that tracks who owns the mineral rights. You have to go back to the original ownership records from when the property was first granted from the state to a private owner, then find every sale, lease, transfer, etc. Hopefully, the documents are on file at the courthouse and you don't miss any.

Then, if there were any leases, sales of mineral rights, sales with mineral rights retained, etc., you have to see whether there was production on the land, when production ended, find out what is "production", etc.

There are people who will look this up for you for a fee. Even the professionals get it wrong occasionally. Sometimes you have to fight it out in court.

Permalink Reply by widowwoman3 on August 17, 2010 at 13:01

what if the leasing company missed that the state owned your property, because it is not obvious in the title work, and gave you a lease? will this be something that is never looked at again if a well is not put on your property but is put in your section, or if the lease comes up for renewal again?

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Permalink Reply by Two Dogs, Pirate on August 17, 2010 at 13:54

This is something that will be looked at again. If the lease has a warranty clause then you will have to pay the money back if the state owns the minerals. Sometimes it is hard to get blood out of a turnip. Most attorneys will strike the warranty clause. If the leases were bought in the hundred dollar range then the landman may have missed something, but if the price was over $500 then they would have looked at it closer or at least I would have. Tell you the truth, I put all land titles back before 1921, or until I find a solid deed. I will also look at the patent because some federal patents started reserving minerals around 1914. You can't come into this biz with short pants on. Mistakes get you fired, and if you get fired the word is spread around to other brokers. I have seen landmen with 30 years experience that don't know how to run title for an abstract.

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Permalink Reply by The_Baron on August 18, 2010 at 5:14

Even striking the warranty clause may not be enough.

King vs. Strohe (LA 3rd Cir. of appeals) held that a lessee can recover royalties paid to a lessor who was subsequntly foun d to have no interest in the leased premises even though the lease was granted without warrant yof title.

The Court found that LA civial code provides that "he who has received that which is not due to him, wehter through error or knowingly, obligates himself to restore it to him from whom he has unduly received it."

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Permalink Reply by Mac Davis on August 18, 2010 at 11:19

IANAL

Giving back the payments received is one thing. Some of the language I've received about "defending the lease" sounds like you could be on the hook for the leasing company's legal costs or other costs. Striking these clauses and adding your own "no warranty" wording is probably a really good idea even if it's not 100% bullet proof.

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