When a land owner won't convey minerals in sale

[GTXHUNTER88]

get an o&g attorney run the title you never go into buying property without a lawyer.

[TildenHunter]

That's if he actually owns any or even has execs to what he does have. If they aren't sure what they have, have a good O&G attorney run full title on it to figure it out.

Yes my statement was revolving around the seller owning something to begin with. If not, then this is all kind of a moot point.

[cj7zrcool]

It was my experience that many, if not most, landowners do not own the mineral rights to the property they're selling. I bought 17 acres in Wise County that had been in the same family for over 70 years and they did not own the mineral rights.

[kd8jgu]

Wife owns 1/6th of the mineral rights on old family farm
From what I have seen no one wants to give them up
Like pulling teeth from a wide awake mountain lion

[BBRU]

Just my 2 cents, I think it's ridiculous that you can sell land, but retain the mineral rights. I may get blasted for this, but it's just my opinion. Mineral rights should go to the new land owner.

[Drycreek3189]

Just my 2 cents, I think it's ridiculous that you can sell land, but retain the mineral rights. I may get blasted for this, but it's just my opinion. Mineral rights should go to the new land owner.

I'm with you buddy, but that die was cast many moons ago, and you can be sure the perpetrators of that legal razzle-dazzle got rich with it.

[BBRU]

I'm with you buddy, but that die was cast many moons ago, and you can be sure the perpetrators of that legal razzle-dazzle got rich with it.

Oh, no doubt on that.... Definitely a law that should be changed IMO.

[quarterback]

Ask for the 50% of whatever the seller owns along with the Executive Rights. That way your surface is protected from any future exploration/surface development unless you OK it. He will then have what is called a Non Exec Mineral Interest. He will still be paid the appropriate amount of bonus consideration but you have the control to negotiate the lease (and put a no surface clause in a lease etc.)

I don't think this is correct. The laws of Texas favor mineral ownership. Who is to say that executive rights haven't already been conveyed to someone else? Or that the current owner has the right to grant Executive Rights to the seller? There are so many variables to this "what if" scenario it really boils down to hiring an attorney before purchasing land. Period. Just because you own a portion of the minerals along with the surface doesn't guarantee that the other mineral owners can't enjoy the potential revenues from their interests. And if you really want to keep the oil company from drilling on your land, beware of pooling rights that the other mineral owners may potentially have. They can lease their minerals, have them incorporated into a pooled unit and the oil company can drill next door and drain all the oil and gas from your acreage while you sit back and wonder what just happened. Ask me how I know.

Hire an attorney.

[kingchip]

I'm with you buddy, but that die was cast many moons ago, and you can be sure the perpetrators of that legal razzle-dazzle got rich with it.

Or if you didn't like the terms of the sale, just don't buy. I don't like the communist lean to this conversation.

[BrandonA]

Ask for the 50% of whatever the seller owns along with the Executive Rights. That way your surface is protected from any future exploration/surface development unless you OK it. He will then have what is called a Non Exec Mineral Interest. He will still be paid the appropriate amount of bonus consideration but you have the control to negotiate the lease (and put a no surface clause in a lease etc.)

This is what I have always heard. I know when mom and dad bought the ranch in Mills county they 100% mineral and 100% executive

[dhall]

Good luck all owners retain them now days.

[TildenHunter]

When a land owner won't convey minerals in sale

I don't think this is correct. The laws of Texas favor mineral ownership. Who is to say that executive rights haven't already been conveyed to someone else? Or that the current owner has the right to grant Executive Rights to the seller? There are so many variables to this "what if" scenario it really boils down to hiring an attorney before purchasing land. Period. Just because you own a portion of the minerals along with the surface doesn't guarantee that the other mineral owners can't enjoy the potential revenues from their interests. And if you really want to keep the oil company from drilling on your land, beware of pooling rights that the other mineral owners may potentially have. They can lease their minerals, have them incorporated into a pooled unit and the oil company can drill next door and drain all the oil and gas from your acreage while you sit back and wonder what just happened. Ask me how I know.



Hire an attorney.

Not trying to be a smart azz or anything but it 100% is correct. I have no idea if the seller has the exec rights but they are what are needed in order to have final say so on what does and doesn't happen with an oil company stepping foot on a property. If you have the exec rights then you negotiate the lease even if you have 0 of the minerals. They negotiate the lease and the non exec min owner will ratify said lease and be paid bonus money accordingly.

I've been a Landman for the last 8 years. I do this kind of stuff on a daily basis. You are right, there are a ton of variables that we don't know but if the seller has minerals and the exec rights then he should pursue the exec rights and 50% of what seller owns. That way he is protected and has final say so.

[kumathebear]

This

it's been my understanding that in TX land deals, the owner very rarely sells mineral rights

I would think the only reason they would even sell HALF the rights is there is either NO potential or production history. The mineral industry changes so much..from NOTHING to Riches...for a while anyway...lot's of "would be millionaires" getting nothing with prices what they are now.

Question is to ask what value the seller is putting on the mineral rights? With today's market, that's a real question if they can even give you an answer.

Oh, replying from experience with this question. Good luck!

[GeoHunter]

I know I'm young and the mineral rights issue was decided long before I was born but as a future land owner I really think the mineral rights should go to the owner. Not held on by previous owners just to be passed on and split up between children and grandkids.

It's like having harvest rights on a bow. I sell you a bow, you get to enjoy it by shooting it, you can improve/modify it, maybe make money off of it in competitions, but if you harvest a deer with it I get the meat.

Bad analogy??

[PYBUCK]

Usually in Texas if you have a chance to buy mineral rights there is not much activity or prospects in the area. As mentioned above make sure you get the executive rights regardless of the amount of mineral interest you get. Also if there is wind energy in the area make sure you get the wind/executive rights to that too.