landowner

selling mineral rights

I am under contract to sell my mineral rights, and the company sent me the deed to review today. It says: In consideration of the sum of Ten Dollars and other good and valuable consideration.  I am obviously not selling for $10. They want me to have it notarized here and scan them a copy, then they will wire me the true amount, then I will send them the original overnight once I receive the true amount of money. Is this legal? Is this normal? Am I getting scammed?

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 31, 2023 at 10:44

Sara, I am helping with a sale that will be closing on Monday.  I represented the seller to the buyer.  I always require a cover letter or a closing statement that has the actual sales price.  Every buyer should do that as the mineral deed will be filed in the public record and many (most) sellers do not care for what they receive at sale to be available to anyone who cares to look.  Anyone can.  They would prefer to keep that confidential.  I suggest that you request a cover letter or a closing statement with the purchase price before forwarding an executed mineral deed.


landownerPermalink Reply by Sara on March 31, 2023 at 10:49

Thank you Skip. Is one preferable to the other?


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 31, 2023 at 10:52

Not really.  It is both legal and usual for a mineral deed to not include the actual sales price.  The "Ten Dollars and Other Valuable Considerations" is standard boiler plate language found in all mineral deeds in place of the sales price.  If you are dealing with a reputable buyer, either a cover letter or a closing statement will be fine.


landownerPermalink Reply by Sara on March 31, 2023 at 10:56

Thank you so much!


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 31, 2023 at 10:57

You're welcome, Sara.

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