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Our mail has been forwarded from the property that we just sold. Yesterday, we received a thick envelope from an Oil & Gas company with a check and a contract for a 3-year lease plus 20% of any royalties, for the property that we JUST SOLD.
We didn't realize that we had 15/16's of the mineral rights and that we conveyed them, along with the sale of the property, to the new owner.
<beating head against wall>
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That information didn't show up on your title report? Wow, too bad you didn't receive that information a few months ago!
are you Sure you conveyed your mineral rights.
One can convey the real estate without conveying mineral rights.
You may want to spend a little $ for a real estate attorney to review your situation.
It's possible that you conveyed the property and retained the mineral rights. Take all your paperwork to the attorney, contract, closing papers, info on mineral rights, lease etc.
Also, regarding the lease, the new leases sometimes inclue language to make owner responsible for some of the O&G expenses.
Best of luck
excellent. exellent. excellent. topic.
We've been in contact with the gas & oil company. They have reviewed our selling contract. Because we did not state "surface property only" or something like that, the mineral rights go to the new owner. A co-worker talked with his gas/oil attorney and was informed that this is the most common transference of mineral rights. People selling the rights because they didn't know they had them in the first place. If the mineral rights are not clearly excluded in the contract, they go with the property. We didn't know. I bet that if we had hired an attorney to go over the paperwork, we might have caught this up front.
Learn from our mistakes. :)
is this raw land? or is it an urban house?
"NEVER assume" begins this discussion.
There are huge class action suits against the oil and gas companies who have taken financial advantage of mineral rights owners in our area.
If it was me, I'd have a lawyer who represented me look over your paperwork. Lots of lawyers will give an initial visit and not charge because they want the decision of wheter they want the case.
Having the oil and gas company look over your paperwork is like trusting your wife's divorce lawyer will give you a square deal in the divorce.
It was 1.3 acres of land, a very narrow strip of land, with a house at the front and nothing but a creek and trees at the back. The area that we were living at, like most of the Dallas/Fort Worth area, is sitting on a large natural gas reserve called the Barnett Shale. It's part of what is keeping the economy going in my area. There's been a drilling boom for the last 4 years. If they drill in your area, potentially under your property, you might get some money. How much depends upon gas production and what type of a lease you were suckered into signing. If we knew that we had the mineral rights, we wouldn't have sold them. We didn't find out and that was stupid of us.
In the state of California the mineral rights are specifically excluded from all land transactions as the state has retained those rights to itself. All leases on land for mining development and excavation are negotiated directly with the state. The land owner has no say or rights in any of these transactions.
I forget when this was enacted but it's been this way at least for my life time.
The oil & gas company has the responsibility to find out who owns the mineral rights. They have to get it right. I wouldn't trust them to go over the terms of a lease and consider my best interest. But when it comes to finding out who they have to offer the lease to, they have to track down the correct owner. Otherwise, they get sued.
TWB: That sucks!
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