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Message
Just bought 40 acres
Posted on 10/30/13 at 1:06 am
Posted on 10/30/13 at 1:06 am
One week after i close on the land, the seller(mineral rights owner) emails me about, she was contacted by an oil company and they want to lease the land for oil and gas exploration. She owns the mineral rights for 10 years. I didnt buy the land to have a well in my back yard. Am i screwed? Do i have any say so? Ive never run into this prob before in buyn land.
11
Posted on 10/30/13 at 4:25 am to SD90MAC
Here is Louisiana, When selling land, the owner can keep the mineral rights up to 10 years of said sale date unless there is a producing well on said land. Then the minerals rights stay with the first owner till once said well stops producing.
You are a screwed pooch.
quote:
I didnt buy the land to have a well in my back yard. Am i screwed? Do i have any say so?
You are a screwed pooch.
Posted on 10/30/13 at 4:51 am to fishfighter
Well aint that great freaking news. All i can do now is hope they dint find any gas or oil. Do i get any lease money?
Posted on 10/30/13 at 5:08 am to SD90MAC
quote:
Do i get any lease money?
Not sure, but don't think so. Now if they put the well on your land, you will be paid something for surface rights.
Were is the land at?
Posted on 10/30/13 at 5:17 am to fishfighter
Ragley, la
Posted on 10/30/13 at 5:22 am to SD90MAC
quote:
Ragley, la
Where that hell that is at?
Posted on 10/30/13 at 5:27 am to fishfighter
30 r so miles north of lake charles off 171 lol
Posted on 10/30/13 at 5:33 am to fishfighter
Beauregard parish
Posted on 10/30/13 at 5:38 am to SD90MAC
quote:
Beauregard parish
Got you. Really don't know if they are drilling that much in that area now.
Ask the pass owner how long is the lease will be. 2,3 or 5 years at most.
Posted on 10/30/13 at 5:39 am to SD90MAC
We've got mineral rights on close to a thousand acres in E. Tex, so opposite of your situation- little check comes every month, but not once has someone from the oil co. stepped foot on it- it's been this way for as long as I can remember. So, as long as they don't find anything, you're good- but also remember that the could put the rig elsewhere and still produce from under your property.
Posted on 10/30/13 at 6:31 am to SD90MAC
Just curious, a landowner does not own the mineral rights to his own land in Louisiana? Why would anyone buy land without owning all rights to it? Is that pretty normal practice there or lots of places?
Posted on 10/30/13 at 6:57 am to kywildcatfanone
From what ive been reading on the net, all states r different with there mineral rights. Mississippi has terrible mineral right laws, whoever owns the mineral rites, keeps them forever and passes them down to kids. Atleast louisiana has a ten year limit.
Posted on 10/30/13 at 7:06 am to SD90MAC
I guess I didn't know that. Not sure I would want to purchase land myself that I didn't own "everything" associated with it.
However, I wish you luck in your situation.
However, I wish you luck in your situation.
Posted on 10/30/13 at 7:12 am to kywildcatfanone
quote:
Just curious, a landowner does not own the mineral rights to his own land in Louisiana?
If you have complete ownership, but many people reserve the mineral rights on sale - one must read the sale documents very carefully. This is especially true of larger tracts of rural land. As Louisiana allows, in the civilian tradition, the separation of usus, fructus and abusus. We also have servitudes (rather than rights of way).
For example, a couple can donate their home to their children, but reserve a lifetime ususfruct (or, perhaps a lifetime right of habitation), which allows them to live in the home until they die or are no longer capable of living on their own. This takes the whole - "Medicaid makes you sell your home" situation out, if done at least 5 years before Medicaid is needed.
Wiki article on usufruct
This post was edited on 10/30/13 at 7:14 am
Posted on 10/30/13 at 7:16 am to Ace Midnight
quote:
Ace Midnight
Very interesting, thanks.
I guess I've never lived in an area that had such conditions and didn't realize they existed. Posted on 10/30/13 at 7:23 am to kywildcatfanone
quote:
I guess I've never lived in an area that had such conditions and didn't realize they existed.
All that money I spent on law school education comes in handy at times, even though I never did much property law - only peripherally.
Posted on 10/30/13 at 7:27 am to kywildcatfanone
If the land wasn't leased when you bought it then there's no issue. The oil company has to now negotiate surface rights with OP and minerals with previous owner.
If a lease was in place at sale, it all depends on the verbiage. However, in this scenario, it's probable that the land will be included in a pooled unit and you never see the oil co.
If a lease was in place at sale, it all depends on the verbiage. However, in this scenario, it's probable that the land will be included in a pooled unit and you never see the oil co.
Posted on 10/30/13 at 8:04 am to cmlsu
quote:
The oil company has to now negotiate surface rights with OP and minerals with previous owner.
This the way I understand it as well.
I once bought a piece of property where the seller reserved the mineral rights. However, this did not give anyone the right to the surface use of the property. The oil company could directionally drill to get at the reserves under my property but they could not step foot on it without a separate agreement in place with the landowner.
If they do approach you for a surface use agreement, have an attorney review it before you sign. the one they asked me to sign basically said they could require me to vacate the premises during drilling activities. On advice from the attorney, I declined to sign anything giving them surface use rights. Wasn't worth the possible headaches.
Posted on 10/30/13 at 8:10 am to SD90MAC
quote:Sounds like they contacted her months ago and she decided to sell the land but keep the rights.
One week after i close on the land, the seller(mineral rights owner) emails me about, she was contacted by an oil company and they want to lease the land for oil and gas exploration.
Posted on 10/30/13 at 8:17 am to SD90MAC
You would have to lease the surface rights and get what little piece of the pie you can. If you say no, they'll just drill on someone else's land and hit the oil under you anyway.
As far as the Ragley area is concerned, its very unlikely they drill anything. We have 40 acres ourself in the area and we've leased for probably the last 5-6 years or so and they haven't tapped a well anywhere yet.
There's only been one well active that I can remember, but they've since capped it.
Anyhow, welcome neighbor.
As far as the Ragley area is concerned, its very unlikely they drill anything. We have 40 acres ourself in the area and we've leased for probably the last 5-6 years or so and they haven't tapped a well anywhere yet.
There's only been one well active that I can remember, but they've since capped it.
Anyhow, welcome neighbor.
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