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re: Just bought 40 acres
Posted on 10/30/13 at 8:59 am to southernelite
Posted on 10/30/13 at 8:59 am to southernelite
Very good info. It is in a pool of 300 acres the oil company wants to explore. Also, i did sign a peice of paper at the lawyers office when i closed that i would retain mineral rights after ten years. So i knew i didnt own the mineral rites. Just didnt think anybody would want to lease it one week after i closed.
1
Posted on 10/30/13 at 9:03 am to cmlsu
There was no previous lease on the land.
Can the seller still lease the rights to my land even though i dont sign. Or do they have to get both of us to sign?
Can the seller still lease the rights to my land even though i dont sign. Or do they have to get both of us to sign?
Posted on 10/30/13 at 9:20 am to kywildcatfanone
quote:
Is that pretty normal practice there or lots of places?
Yup.
Posted on 10/30/13 at 9:54 am to SD90MAC
Why didn't you buy the minerals?
Posted on 10/30/13 at 9:58 am to Bear Is Dead
quote:very few people in their right mind are going to voluntary relinquish their mineral rights. especially in this area where they've been doing a ton of seismic testing in the past 3-4 years.
Why didn't you buy the minerals?
Posted on 10/30/13 at 10:02 am to Ace Midnight
Usufruct is still my favorite word of all time.
Posted on 10/30/13 at 10:05 am to SD90MAC
quote:
There was no previous lease on the land. Can the seller still lease the rights to my land even though i dont sign. Or do they have to get both of us to sign?
No, the seller cannot lease your surface rights at this point...you now own them. If the oil company wants the option to use the surface rights at a later time then they have to negotiate with you.
However, the seller can still negotiate with the oil company seperate from you regarding the minerals underground.
Posted on 10/30/13 at 10:09 am to Ace Midnight
quote:
This takes the whole - "Medicaid makes you sell your home" situation out, if done at least 5 years before Medicaid is needed.
Which is something I did a bit over a year ago due to my health. Now if only I could find a way around the tax laws to give all my moneys that are in 401ks.
Then I would be able to fall under Medicaid in a couple years.
Posted on 10/30/13 at 10:14 am to SD90MAC
quote:
Can the seller still lease the rights to my land even though i dont sign
Not surface rights, but what is under, yes for 10 years from sale day.
OP, now if the oil company wants to shoot for seismic, you will get X amount of money per hole across your land. Last time they did my place(20+ years ago), I was paid $25 a pop. Don't know the going rates now.
This post was edited on 10/30/13 at 10:19 am
Posted on 10/30/13 at 10:25 am to fishfighter
Go sign up for use value at your assessors office to lower your taxes on the 40 acres
Posted on 10/30/13 at 10:52 am to southernelite
quote:
very few people in their right mind are going to voluntary relinquish their mineral rights. especially in this area where they've been doing a ton of seismic testing in the past 3-4 years.
I was just wondering, sounded like OP wasn't wanting (or cared) to buy the land with the minerals.
Posted on 10/30/13 at 12:30 pm to SD90MAC
You can ask the mineral owner to include a no drill clause, or at the very least, ask them to include a 'no drilling within 500 feet of any house, barn or structure' ( the lease give you 200 feet in the standard language). If it's only 300 acres, the company may not be willing to do that, though. Other than that, you're pretty well hamstrung. The lease will trump your rights as a surface owner, so in theory, the mineral owner holds all the cards. The company will negotiate directly with you in the event they want to lay a road or put a well site on the property.
Also keep in mind, that 10 year mineral reservation is 10 years of NONPRODUCTION. If they drill a well next year and find something, that 10 year prescription is halted and started over when the well stops producing.
Good luck.
Also keep in mind, that 10 year mineral reservation is 10 years of NONPRODUCTION. If they drill a well next year and find something, that 10 year prescription is halted and started over when the well stops producing.
Good luck.
Posted on 10/30/13 at 12:40 pm to fishfighter
quote:
Which is something I did a bit over a year ago due to my health. Now if only I could find a way around the tax laws to give all my moneys that are in 401ks.
Fish - you might want to talk to an estate planner - your situation is a little different as you are not quite as old as people they deal with, but there may be some options to make an irrevocable donation of those assets to a trust that you still control, and reserve the income from the trust - depending on the size of the estate, that can allow you to dial up or down the investment package, and generate income below the Medicaid threshold - you still have to wait out the 5 years and there might be tax consequences, regardless, but a good estate planner will at least have some options for you.
Posted on 10/30/13 at 5:20 pm to LSUGUMBO
I just talked to the land guy thats doing the lease. He said i get no lease money and they can come on my property without my consent.
This is bull.
Anybody want 40 acres?
I guess im gona get a lawyer.
This is bull.
Anybody want 40 acres?
I guess im gona get a lawyer.
Posted on 10/30/13 at 6:35 pm to SD90MAC
They aren't just going to waltz on to your property and build a rig in your back yard (contrary to popular belief), but you definitely lose a lot of bargaining power if you don't hold the mineral rights. Work with the mineral owner to get a no drill within XXX feet ( start with something like 750- they probably won't go for it, but I'm sure they can work something out. 500 feet is not all that uncommon.
I don't necessarily recommend a lawyer unles you're a) going to work out a surface agreement now or b) going to try and get the sale rescinded because you think the previous owner didn't disclose the possibility of a lease (which may or may not be a valid excuse.
At this point, I'd wait and see what happens- it may end up being all for nothing if they don't drill or don't find anything. And even if they drill, it's not a certainty that your 40 acres will be disturbed.
I don't necessarily recommend a lawyer unles you're a) going to work out a surface agreement now or b) going to try and get the sale rescinded because you think the previous owner didn't disclose the possibility of a lease (which may or may not be a valid excuse.
At this point, I'd wait and see what happens- it may end up being all for nothing if they don't drill or don't find anything. And even if they drill, it's not a certainty that your 40 acres will be disturbed.
Posted on 10/30/13 at 6:40 pm to SD90MAC
quote:
Posted by SD90MAC I just talked to the land guy thats doing the lease. He said i get no lease money and they can come on my property without my consent. This is bull. Anybody want 40 acres? I guess im gona get a lawyer.
This means that the lease was in place at time of sale? When was it signed? Keep in mind, it doesn't mean anybody will ever drill on the land.
Also, you can ask the oil company to give you a designated drill site if they ever chose to do anything on the land. It's nothing concrete but it would give you an idea and help ease any concerns.
(If the lease is still being negotiated then those terms make sense but you can get something for the use of your surface but nothing more in regards to royalties)
Posted on 10/30/13 at 7:45 pm to SD90MAC
My background is on the pipeline side of the E&P world, but it seems crazy that they could drill without getting a temporary easement from the surface owner.
Posted on 10/30/13 at 9:26 pm to sneakytiger
I DRINK YOUR MILKSHAKE!
Posted on 10/31/13 at 9:49 am to SD90MAC
quote:
ne 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.
The well may not be on your property...should the well be located on you property you will be able to negotiate a surface use agreement and get some cash in the neighborhood of $10k....but you cannot bar their entry...the surface estate is subservient and if you resist they will just get a TRO and move on to your property...be a tough negotiator and get as much as you can.
Posted on 10/31/13 at 9:49 am to fishfighter
quote:
Then the minerals rights stay with the first owner till once said well stops producing.
And the 10 year clock starts running again.
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