Mineral rights on a property | TigerDroppings.com

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clamdip
LSU Fan
Rocky Mountain High
Member since Sep 2004
9105 posts

Mineral rights on a property



How big of a deal should I make of this if the seller wants to keep them?

He did include:
"Mineral Rights owned by Seller, if any, are to be retained by Seller but with waiver of any right to use the surface."







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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16759 posts

re: Mineral rights on a property


Depends on the property, but in any situation, I would tell the guy to go to hell before seperating the mineral rights.





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Bussemer
LSU Fan
Heading South
Member since Dec 2007
2358 posts

re: Mineral rights on a property


Completely depends on where, but always a good idea to try and get them if possible. If anybody ever drills a well in downtown Lafayette I am SET





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clamdip
LSU Fan
Rocky Mountain High
Member since Sep 2004
9105 posts

re: Mineral rights on a property


oh and more info....

this property is approx 50 acres. The Seller owns several hundred more acres adjacent to the property, which is also on the market.

I'm guess he could put a directional well on that property and hit the minerals under mine in this scenario, with no further authorization from me needed?






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Camp Randall
Wisconsin Fan
The Shadow of the Valley of Death
Member since Nov 2005
13269 posts
 Online 

re: Mineral rights on a property


I talked to a guy who just decided to throw in a retainer of mineral rights on a sale. He told me the buyer was ok with it, he shrugged his shoulders and laughed.

He would have sold it without the mineral rights.






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agdoctor
LSU Fan
Louisiana
Member since Dec 2004
1745 posts

re: Mineral rights on a property


I think the seller can only retain them for 10 years.





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Camp Randall
Wisconsin Fan
The Shadow of the Valley of Death
Member since Nov 2005
13269 posts
 Online 

re: Mineral rights on a property


I thought if there is a lease is on the property, the sell can retain them forever or until the lease is inactive for 10 years. I have no idea what I am talking about.





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agdoctor
LSU Fan
Louisiana
Member since Dec 2004
1745 posts

re: Mineral rights on a property


he can retain them for only 10 years unless some production takes place. If a well is brought in and the owner receives some of the royalties then yes they could keep them as long as they get payments.





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athletemed
LSU Fan
The Woodlands, Texas
Member since Oct 2007
5471 posts

re: Mineral rights on a property


tell him no...how bad do you want the property and how bad does he want to sell it...







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blueridgeTiger
LSU Fan
Western North Carolina
Member since Jun 2004
9051 posts

re: Mineral rights on a property


quote:

I'm guess he could put a directional well on that property and hit the minerals under mine in this scenario,


Doesn't have to be a directional well - if that 50 acres (or even part of it) are included within a unit with a well on other property, the seller who retained the mineral rights gets the benefit of the production.






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MoreOrLes
LSU Fan
Member since Nov 2008
16536 posts

re: Mineral rights on a property


Talk to your closing attorney. My understanding is that there is a pre defined amount of time that the seller can retain said rights and then they automatically revert to the land owner.





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Bussemer
LSU Fan
Heading South
Member since Dec 2007
2358 posts

re: Mineral rights on a property


And a vertical well on his property will/can drain from your property(which is fine if he owns the minerals).

I'd always lean towards getting them if you dont have to fork over a bunch of cash.

Is there any production in the area?






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clamdip
LSU Fan
Rocky Mountain High
Member since Sep 2004
9105 posts

re: Mineral rights on a property


quote:

he can retain them for only 10 years unless some production takes place. If a well is brought in and the owner receives some of the royalties then yes they could keep them as long as they get payment


good info. thanks!






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clamdip
LSU Fan
Rocky Mountain High
Member since Sep 2004
9105 posts

re: Mineral rights on a property


quote:

Is there any production in the area?


that's what I'm trying to find out. This is in central West Feliciana Parish, and I don't see much signs of production. I've even toured his other hundreds of acres and not seen any sign of such, but I wasn't really looking.






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Bussemer
LSU Fan
Heading South
Member since Dec 2007
2358 posts

re: Mineral rights on a property


quote:

West Feliciana Parish


There's potential for Tuscaloosa Marine Shale in that area if anyone could figure out a way to drill an economic well. I'd try and get them just in case.






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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16759 posts

re: Mineral rights on a property


FWIW, there are a lot of special laws pertaining to mineral rights.

I don't have the time to chip away at them, but you should really look into them, at least to some extent.






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DaBeerz
Oklahoma Fan
Billsburg, VA
Member since Sep 2004
9636 posts
 Online 

re: Mineral rights on a property


I would never own land without the mineral rights... you just never know





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LSUGUMBO
New Orleans Saints Fan
Shreveport, LA
Member since Sep 2005
4777 posts
 Online 

re: Mineral rights on a property


At best I'd ask for half of them. Then at least if something happens you get a piece of the pie and eventually (in theory) you or your heirs will get the other half back.





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clamdip
LSU Fan
Rocky Mountain High
Member since Sep 2004
9105 posts

re: Mineral rights on a property


quote:

At best I'd ask for half of them. Then at least if something happens you get a piece of the pie and eventually (in theory) you or your heirs will get the other half back.


he just counteroffered 50/50 split on mineral rights.

One question I have about this 10-year limit on owning the mineral rights if you don't own the property itself: what happens at the end of the 10 years? Do the rights go to the property owner automatically?






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just me
Virginia Fan
Front of the Class: Schooling You
Member since Mar 2006
34489 posts

re: Mineral rights on a property


quote:

One question I have about this 10-year limit on owning the mineral rights if you don't own the property itself: what happens at the end of the 10 years? Do the rights go to the property owner automatically?
Yes. They revert to the naked owner automatically.






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