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Old 09-14-2011, 04:27 PM
 
27 posts, read 40,956 times
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Quote:
Originally Posted by rugerjitsu View Post
well, it takes a fairly thorough examination of the title chain to your property...we usually are researching documents clear back to the mid 1800's.

first thing i would do is look at your deed. did the sellor (grantor) reserve the minerals?

if yes, then you don't own the minerals.

if no, then you would have to look back to the prior deed, and keep searching to find mineral reservations...it's a job!

and yes, it matters when landmen are looking to lease the mineral owner.
Thank You for the reply! I will check my deed first. Are you with the gas companies?
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Old 09-14-2011, 04:32 PM
 
27 posts, read 40,956 times
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Quote:
Originally Posted by Hopes View Post
She received an up front bonus payment AND monthly lease payments started immediately. Her property is specifically reserved for a gas line if the gas company ever needs to install one. Drilling hasn't started on any of the other properties in the unit pool. She has something called a Pugh Clause, if that helps explain it. Based on what you shared, it sounds like she negotiated herself a nice deal.
You may have hit the nail on the head,, It says her property is SPECIFICALLY RESERRVED,,, would that be like paying rent every month for a site ?
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Old 09-14-2011, 04:45 PM
 
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I know I'am being a pain in the rear but i was just thinking if i dont own my mineral rights and they do take gas from my property,, who get's paid? Would it be the owner from way back that sold the property and kept the right's? rugerjitsu i hope you dont mind me asking these questions and i really appreciate any help you can give me,, first off though i have to find out if i own my mineral right's.
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Old 09-14-2011, 05:05 PM
 
Location: On the Chesapeake
44,918 posts, read 59,916,725 times
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When my family sold the farm many decades ago they kept the rights for coal but at some time prior had sold the gas rights.

An issue developed in the late 70's where a coal guy falsified the coal rights documents and leased the mining out to a company. That was fun to straighten out. Family also got some decent royalties.
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Old 09-14-2011, 05:12 PM
 
5,894 posts, read 6,840,863 times
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Quote:
Originally Posted by theo2 View Post
I know I'am being a pain in the rear but i was just thinking if i dont own my mineral rights and they do take gas from my property,, who get's paid? Would it be the owner from way back that sold the property and kept the right's? rugerjitsu i hope you dont mind me asking these questions and i really appreciate any help you can give me,, first off though i have to find out if i own my mineral right's.
Whoever owns the mineral rights gets paid the royalties. The land owner can recoup the cost of whatever the gas co. has to do to get to the gas & property damage that may occur (build a road, take down a fence, etc).
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Old 09-14-2011, 05:27 PM
 
27 posts, read 40,956 times
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Quote:
Originally Posted by UKyank View Post
Whoever owns the mineral rights gets paid the royalties. The land owner can recoup the cost of whatever the gas co. has to do to get to the gas & property damage that may occur (build a road, take down a fence, etc).
You say that whoever owns the mineral rights get paid the royalties, what about the person who owns the land if they actually set a rig up on his property? Can i refuse to let them set up a well site if i dont want it on my property?
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Old 09-14-2011, 05:55 PM
 
Location: On the Chesapeake
44,918 posts, read 59,916,725 times
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Quote:
Originally Posted by theo2 View Post
You say that whoever owns the mineral rights get paid the royalties, what about the person who owns the land if they actually set a rig up on his property? Can i refuse to let them set up a well site if i dont want it on my property?


Generally, no.
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Old 09-14-2011, 06:16 PM
 
43,011 posts, read 107,636,560 times
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Quote:
Originally Posted by UKyank View Post
I'm curious what this is too.....Ive only heard of monthly payments through royalties (or special non-regular payments like paying for trees that are removed) but obviously neither of those apply of nothing is actually being done on the property now.
A Pugh clause just means that if company ties up your land with a lease & then doesn't actually develop it within a time frame then they lose it & you can re-lease it to someone else.
It can also mean they have to pay rent when they're not developing it, depending on how it's written of course.

From what I understand, the terms of the Pugh clause can vary and my SIL did a very good job negotiating her contract.

Quote:
Originally Posted by UKyank View Post
You may have hit the nail on the head,, It says her property is SPECIFICALLY RESERRVED,,, would that be like paying rent every month for a site ?
That's how I understand it.
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Old 09-14-2011, 06:38 PM
 
27 posts, read 40,956 times
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OK,I've looked at my deed and i cannot find anything on it about the previous owner reserving mineral rights, whats my next step?
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Old 09-15-2011, 07:22 AM
 
1,895 posts, read 3,402,272 times
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Quote:
Originally Posted by theo2 View Post
OK,I've looked at my deed and i cannot find anything on it about the previous owner reserving mineral rights, whats my next step?
go to the courthouse and check the deed going into the person that sold it to you...then keep doing that until you find yourself in the mid 1800's, or as far back as you can go.

and yes, i'm in the business...

there a two main pugh clauses, horizontal and vertical.

horizontal pugh clauses release the land NOT unitized after the primary term has expired.

example, you own 100 acres. the unit only covers 50 acres of your land. after the primary term expires, the remaining 50 acres NOT in the unit is released. meaning it can be leased again, and placed in another unit.

vertical pugh clauses release the area below or above the depth not being developed.

example, you own 50 acres. the unit covers the entire 50 acres, and they are targeting the Marcellus shale. the vertical pugh clause would require the company to lease your rights again to develop the Utica Shale, which i believe is below the depth of the Marcellus.
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