Question on mineral rights and gas lease. (leasing, attorneys)

[Kurt]

I bought my land on Toledo Bend for recreational use and did get a pretty good deal, but the seller kept the mineral rights. Yeah, I probably should have held out for them, but I did get a codicil on the deed prohibiting any surface structures or pipe lines on the land itself.

There are two active gas wells in the area. My understanding is that as long as they are active the former owner of the land gets the leasehold and mineral rights.

But if I possess the land for 10 years any new leasehold will be negotiated with me. I understand that even if I have the land for 10 years the old leasehold is with the original owner unless production should cease and then start up again at an existing site.

Is this about right? There is lots of gas activity in north Sabine and Desoto Parish. I am just on the border of these two with my acreage extending along Toledo Bend lake.

Would appreciate any information on this. Thanks alot.

[Kurt]

Well, folks, I just did a search and found an expert on oil leases that is investigating for me. It is too complicated to do on your own. Even attorneys hire the experts. I am supposed to get a report in a few weeks. I am of the opinion that many people miss opportunities by being too lazy or cheap to have the thing done right. So, I hope my money is well-spent. At least I will have satisfied my curiousity. I am told there are alot of scam artists out there trying to buy mineral rights from unsuspecting oldsters who need ready cash. Don't fall for it! Be informed.

[bayouboyz]

Did you find out who keeps the mineral rights after 10 years?

[Kurt]

The understanding is that if there is no actual gas or oil production from a well for a period of 10 years the rights go to the person who has owned the property for 10 years. If a well is dormant for 9 years, but starts up again in the 10th year, the original owner has the rights if the leashold is still in effect.

The previous owner of my land had a lease for 1 year. There was no production during that time. But he keeps the mineral rights until I have the land for 10 years--but if there is another lease and production starts up the clock runs another 10 years.

After 10 years any new lease must be made with me. But if any old leaseholds are in effect and there is production within the last 10 years the old owner has the rights to the old well until 10 years have elapsed with no production.

Sort of complicated but that is my understanding. As long as no one discovers gas/oil in the 8.5 years and starts production the total mineral right are my mine, as I have had the land or 1.5 years.

[TSB]

Kurt,
Good explanation. The question I have though is, is there a mechanism in place that on the 10 year mark, the records get updated automatically to put you as the owner of the rights? In other words, are the interested mineral parties automatically going to be in contact with you now, post-10 yr. mark, for the lease or is there some process you have to go through to assume your +10 year ownership rights? I'm in SE LA and I make 10 years in February '09, so I want to know how do the records get updated to reflect that at that point I am the holder and not the previous owner any more.
Thanks

[jimboburnsy]

Originally Posted by Kurt

Well, folks, I just did a search and found an expert on oil leases that is investigating for me. It is too complicated to do on your own. Even attorneys hire the experts. I am supposed to get a report in a few weeks. I am of the opinion that many people miss opportunities by being too lazy or cheap to have the thing done right. So, I hope my money is well-spent. At least I will have satisfied my curiousity. I am told there are alot of scam artists out there trying to buy mineral rights from unsuspecting oldsters who need ready cash. Don't fall for it! Be informed.

You did spend your money well. There is NOTHING more complicated and less intuitive than Louisiana Oil & Gas law. My understanding is that mineral rights in Lousiana can not be permanently severed. At some point, I believe it is ten years, the minerals revert to the surface owner UNLESS the minerals are already being produced. In that case I think that the decade clock starts ticking when production ceases.

[Kurt]

Originally Posted by TSB

Kurt,
Good explanation. The question I have though is, is there a mechanism in place that on the 10 year mark, the records get updated automatically to put you as the owner of the rights? In other words, are the interested mineral parties automatically going to be in contact with you now, post-10 yr. mark, for the lease or is there some process you have to go through to assume your +10 year ownership rights? I'm in SE LA and I make 10 years in February '09, so I want to know how do the records get updated to reflect that at that point I am the holder and not the previous owner any more.
Thanks

Howdy, TSB. It is my understanding that you have to keep up with the status yourself. The parish courthouse should have the reccords as to who is leasing and how long the lease runs. Perhaps a gas company might do this as well and contact you, but I kinda think you have to keep tabs on it yourself. That means having a landsman or attorney check up on it periodically.

[CaptShadow]

It's interesting that I join this forum today and find a thread on this topic. A couple of years ago someone came around to all my neighbors wanting to lease their mineral rights, but I was never contacted. It kind of concerned me, because when I bought this place about 15yrs ago I specifically stated I wanted the mineral rights, and the attorney handling the closing said I would get them. The only thing I can find on my deed is that it states "all rights" were transferred to me. Does this mean I indeed own the mineral rights?

Also Kurt, you mention hiring a landsman to check out your property. I have never heard of a landsman before. Are they the same thing as surveyors?

[Kurt]

Originally Posted by CaptShadow

It's interesting that I join this forum today and find a thread on this topic. A couple of years ago someone came around to all my neighbors wanting to lease their mineral rights, but I was never contacted. It kind of concerned me, because when I bought this place about 15yrs ago I specifically stated I wanted the mineral rights, and the attorney handling the closing said I would get them. The only thing I can find on my deed is that it states "all rights" were transferred to me. Does this mean I indeed own the mineral rights?

Also Kurt, you mention hiring a landsman to check out your property. I have never heard of a landsman before. Are they the same thing as surveyors?

Howdy, CaptShadow! I am not sure what "all rights" means. These could be all surface rights and not mineral--but then again it could mean mineral. You would have to have an attorney clarify that one. I don't think you can rely on a oil/gas company making a lease with the proper owner. I think you have to check up on that for yourself, i. e., why you were not contacted.

A landsman is not a surveyor. He/She is a specialist in researching mineral leases and activity concerning your land. They are the people attorneys hire to do their research. Google "landsman" and you will find out more. Take care.

[CaptShadow]

Thanks Kurt. I found some FAQ's on Louisiana Department of Natural Resources which suggest that I go to my parish clerk of court’s office and research my deed to find out if I own my mineral rights. If I can't determine anything there then I will have to consider hiring a landman or attorney to help me. Thanks again.