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Started By
Message
Question about mineral rights/royalties
Posted on 9/17/14 at 7:03 pm
Posted on 9/17/14 at 7:03 pm
Got a phone call a from La Treasury asking about an address I used to live at. In 05 I bought a plot of about 5 acres and sold it in 09. I did not retain mineral rights with the purchase. Lady called me asking me if I used to live at that address and I told her yes. She said there is a royalty check for about $40,000 for me. Lady stated oil and gas company has been trying to get in touch with me for a few years and turned it into the state. Oil company is out of Texas but my land was Louisiana, I have researched and seen where they are around here (Wild Horse)
I never signed any lease or anything, and didn't have oil wells on my property although there were plenty on adjacent property. I looked up on unclaimed with La Dept of Treasury website to double check and sure enough, my name with exact amount she told me was on there. How would I be getting this money? I really have no clue, should I get it and hold on to it for a few years in case some of their heirs come after it? Really confused.
Eta: Looking back at old papers, Residential Agreement to Purchase and Sell says Mineral Reservations conveyed to buyer w/o warranty.
On the deed at Clerk of Courts it says in writing Vendor is keeping mineral rights. I understand I can get a lawyer, just curious, I was early 20s when I bought that and didn't think anything about mineral rights, I realize I would have been vendee, not vendor?
I never signed any lease or anything, and didn't have oil wells on my property although there were plenty on adjacent property. I looked up on unclaimed with La Dept of Treasury website to double check and sure enough, my name with exact amount she told me was on there. How would I be getting this money? I really have no clue, should I get it and hold on to it for a few years in case some of their heirs come after it? Really confused.
Eta: Looking back at old papers, Residential Agreement to Purchase and Sell says Mineral Reservations conveyed to buyer w/o warranty.
On the deed at Clerk of Courts it says in writing Vendor is keeping mineral rights. I understand I can get a lawyer, just curious, I was early 20s when I bought that and didn't think anything about mineral rights, I realize I would have been vendee, not vendor?
This post was edited on 9/17/14 at 7:07 pm
7
Posted on 9/17/14 at 8:13 pm to windshieldman
Fill out that form and take the $ from the state.
The way I see it is other parties have done the work to locate you.
Congrats.
All my siblings had a little money on that state unclaimed property site, it was annoying to me.
The way I see it is other parties have done the work to locate you.
Congrats.
All my siblings had a little money on that state unclaimed property site, it was annoying to me.
Posted on 9/17/14 at 9:51 pm to windshieldman
When was the money from? The years when you owned the land?
Posted on 9/17/14 at 9:56 pm to windshieldman
quote:
On the deed at Clerk of Courts it says in writing Vendor is keeping mineral rights. I understand I can get a lawyer, just curious, I was early 20s when I bought that and didn't think anything about mineral rights, I realize I would have been vendee, not vendor?
Vendor = seller
Vendee = buyer
If the deed recorded says that the vendor retains mineral rights, then it is likely you may still own the minerals. I would use a few hundred of that $40,000 to hire an attorney to make sure the chain of title is clear before buying a new Mastercraft.
This post was edited on 9/17/14 at 9:59 pm
Posted on 9/18/14 at 6:31 am to LSUFanHouston
quote:
When was the money from? The years when you owned the land?
I honestly have no clue. Oil money, but I didn't have mineral rights
Posted on 9/18/14 at 6:33 am to GaryMyMan
quote:
If the deed recorded says that the vendor retains mineral rights, then it is likely you may still own the minerals. I would use a few hundred of that $40,000 to hire an attorney to make sure the chain of title is clear before buying a new Mastercraft.
That deed was from me buying so they held mineral rights. I will get an attorney. I'm just really not understanding this. I sold in 09 and that deed doesn't say anything about mineral rights.
Posted on 9/18/14 at 7:35 am to windshieldman
The mineral rights (oil or gas) don't need to be on your land for you to get a cut. Basically, you get a cut if you're next to it.
I have 5 wells on mine and I get some from others around mine as well. Enjoy!
I have 5 wells on mine and I get some from others around mine as well. Enjoy!
Posted on 9/18/14 at 8:22 am to windshieldman
Hope it works out man.... great news if it does!
Posted on 9/18/14 at 8:23 am to Mr.Perfect
Thank y'all for the responses.
Posted on 9/18/14 at 8:42 am to windshieldman
I am definitely no expert, and I wouldn't know a lot about the mineral rights transfers in regards to selling the property, but in response to this question:
I'm not sure about the LA laws on forced pooling, but its possible that your interest was force pooled. It could explain why you never knew about it but you have a check waiting for you with the state. Just a thought. LINK - LA Forced Pooling
quote:
I never signed any lease or anything, and didn't have oil wells on my property although there were plenty on adjacent property...How would I be getting this money?
I'm not sure about the LA laws on forced pooling, but its possible that your interest was force pooled. It could explain why you never knew about it but you have a check waiting for you with the state. Just a thought. LINK - LA Forced Pooling
Posted on 9/18/14 at 8:45 am to kennypowers816
Really appreciate link, I'll read over it when I get off work. 
Posted on 9/18/14 at 9:03 am to windshieldman
you don't have to have signed a lease or have a well on your property to receive payment for wells. LA Office of Conservation establishes a unit for a well. if your land is within the unit with a well, you receive a proportionate share of production, lease or not (costs will have been deducted if you didn't lease). also, your property may have been subject to a lease by a prior owner of your property.
imo, you don't really need an attorney, but i won't discourage you from getting one for peace of mind. the oil co will have had title work done to determine who to pay. if they didn't pay the right people, it is on them to get it right. they could conceivably come back at you for reimbursement, but that is a really difficult thing to prove, and $40k likely isn't worth it to them. also, if it is with the state, that means it has been sitting out there for a while and nobody has challenged it. enjoy the payday
This post was edited on 9/18/14 at 9:04 am
Posted on 9/18/14 at 9:25 am to windshieldman
quote:
windshieldman
You bought land in '05. The person you bought it from expressly reserved the mineral rights in the deed when he sold it to you. You turned around and sold it in '09. LA Unclaimed Property is trying to give you royalty money from your time owning that land. Correct?
Definitely consult with an attorney before claiming that money. The only thing I can think of is that maybe the minerals were already severed from the surface estate and the 10-year prescription ran out. In that case the minerals would revert back to you, the current land owner. However, if the minerals were within a producing unit before you bought it, it's not your money.
Posted on 9/18/14 at 10:56 am to chillygentilly
quote:
You bought land in '05. The person you bought it from expressly reserved the mineral rights in the deed when he sold it to you. You turned around and sold it in '09. LA Unclaimed Property is trying to give you royalty money from your time owning that land. Correct?
That is correct
Posted on 9/18/14 at 12:39 pm to windshieldman
Now that I think about it, LA has a 3 year statute of limitations for unpaid or underpaid royalties. So if homeboy who reserved the minerals went after Wild Horse today, he could only recoup 3 years of past production. If you only owned it 04-09 you should be good to go.
I was would still run it by an O&G attorney first, but I would claim it.
I was would still run it by an O&G attorney first, but I would claim it.
This post was edited on 9/18/14 at 12:44 pm
Posted on 9/18/14 at 1:07 pm to chillygentilly
quote:
Now that I think about it, LA has a 3 year statute of limitations for unpaid or underpaid royalties. So if homeboy who reserved the minerals went after Wild Horse today, he could only recoup 3 years of past production. If you only owned it 04-09 you should be good to go.
Music to my ears, I will talk to an attorney next week. Thanks
Posted on 9/18/14 at 1:31 pm to windshieldman
Shoot me an email at bonicay@gmail.com if you are looking for an attorney; I've got a friend that does a ton of LA mineral work and would not charge much for something like this. He probably would take a quick look for no charge.
Posted on 9/18/14 at 2:13 pm to studentsect
it is possible that when the person who sold it to you tried to reserve the minerals, he did not own them.
Then it is also possible that after you owned it a year or more the minerals did prescribe to you from a previous owner who had reserved the minerals and whose 10 year mineral reservation was up, then an oil company drilled a successful well with your property in the unit and never leased you. You would be due 100% of the royalty on your tract less the well costs.
Only thing I can think of.
Then it is also possible that after you owned it a year or more the minerals did prescribe to you from a previous owner who had reserved the minerals and whose 10 year mineral reservation was up, then an oil company drilled a successful well with your property in the unit and never leased you. You would be due 100% of the royalty on your tract less the well costs.
Only thing I can think of.
This post was edited on 9/18/14 at 2:14 pm
Posted on 9/18/14 at 2:36 pm to Hooligan's Ghost
What parish are we talking about? What Section, Township & Range? I can take a quick look and check production in that Section and see if this is possible. It must have been a gangbuster well if your 5 acres is making $40,000, even over 4 years. That's almost $1,000/month and if he was force pooled, the well would have to pay out twice before you started getting royalties.
Posted on 9/18/14 at 3:02 pm to LSUGUMBO
quote:
What parish are we talking about? What Section, Township & Range? I can take a quick look and check production in that Section and see if this is possible. It must have been a gangbuster well if your 5 acres is making $40,000, even over 4 years. That's almost $1,000/month and if he was force pooled, the well would have to pay out twice before you started getting royalties
This was my concern. 5 acres producing 40k over 4 years is a lot. Likely multiple wells were drilled within that unit and the sum may be from 8 or so wells.
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