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Permalink Reply by Chad E Ellis on September 3, 2010 at 16:07

Boy what a question. Most of the details depend on the state you are in and the details of the original lease. Some leases have language that detail surface damages while others are silent. Seismec testing is usually negotiated with the surface owner, however the surface owner usually cannot completely prevent testing. On the other hand, pipeline laying for the wells within the mineral estates unit is usually covered under the lease and the surface owner has little bargining power. However, most operators are willing to work with the surface owner to determine the location an route. It's only when time gets short and the demands get long do the operators exert their superior claim to land usage. I know there are many instances where the operators have "shot first, then asked questions" but most operators try to get along with the surface owners in order to streamline the process because they will have a long term relationship with the surface owner. Now for pipelines that handle off unit gas the surface estate owner is the superior claimant. The mineral estate owner has no legal standing. The surface owner has a very strong standing in determining the price paid, route and conditions of the pipeline. I hope this helps.

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Permalink Reply by Mac Davis on September 3, 2010 at 17:00

IANAL

Was a lease signed before the mineral rights were separated from the surface rights? In theory, the terms of the lease would still apply to any new owners of the surface or mineral rights whether sold, inherited, separated, divided, etc. There might be some specific exceptions in the law, but I suspect they're very limited.

Many leases give the lessee exclusive rights to do seismic testing. I've seen a third party company still offer money for permission for seismic testing to the property owner. I don't know if the seismic company doesn't know about the lease restrictions, is just trying to avoid conflicts, or is just trying to sneak a survey past the lessee. I wonder if any property owners ever get in trouble for signing agreements to allow seismic despite exclusivity agreements in existing leases.

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Permalink Reply by ronda and bruce on September 3, 2010 at 20:11

Chad and Mac : Thanks for the information! I am curious as well if a surface owner could get in trouble for allowing seismic testing without the knowledge/approval of a mineral estate owner; even if it was done unintentionally? I am in Texas, and have yet to be leased, although activity and interest in our area has increased!

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Permalink Reply by michael jordan on September 4, 2010 at 0:42

did you choose some one to help look into you the land in texas ? would you share the name i also am haveing trouble with mineral an land in texas..mj

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Permalink Reply by ronda and bruce on September 4, 2010 at 8:44

mj: no, not yet. I am going to look into it in about a month; we r out of state now , but will be home then. If I find any info or names, I will post! Good luck to you..r

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Permalink Reply by michael jordan on September 5, 2010 at 14:55

thank you for the reply i will look for a post i am also out of the state an can use all the advice i can get..mj

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Permalink Reply by Henry on September 4, 2010 at 13:40

ronda and bruce,
You should read Eric Camp's blog on the limitations of the mineral estate's use of the surface estate. It is written for texas, so you should find it useful.

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Permalink Reply by ronda and bruce on September 4, 2010 at 14:21

Thanks Henry, I did and it touched on alot of areas of concern for us. I guess my concerns are : 1. is it LEGAL, in Texas, for the surface owner to give permission to do seismic testing. 2. Do the seismic testing Co.'s HAVE to notify the mineral estate owner and get permission? 3. Either way, is it WISE to allow testing WITHOUT a lease, or even TALK of a lease? My mind is going nuts over this issue!

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Permalink Reply by benny688 on September 4, 2010 at 16:28

I suppose the mineral owner may be able to force you into seismic testing if you don't want to do it, but in practice the surface owner gets paid a fee to let them lay cable for testing. My last one was summer 2009 and they paid me $20.00/acre just to leave some cable running on the ground through the woods for 2 weeks. Seismic testing may precede any chance of leasing.

Pipeline- my last experience with this was 40 years ago when they built the East Texas Industrial Gas Pipeline, now a part of the Kinder-Mogan network. I got a lot of money to let them run a mile through my property, but OH! what a mess. I don't think I got paid enough.

In Texas the surface owner is in control until a mineral lease is signed and renewed on a timely basis.


In any event I've never had a mineral owner contest these kinds of transactions.
.

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Permalink Reply by ronda and bruce on September 6, 2010 at 18:23

Thanks Steve! we will be closely following this site, as activity is really picking up in our area. Can't wait to get home to see for ourselves!

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