All things pertaining to the Marcellus & Utica Shale

understanding what my deed says

In 1970, our family farm was sold to a local coal company. My current deed says I own all veins of coal below the number 8 vein and including 1/8 of the oil and gas royalty under the premises. I tried to lease to Gulfport but they rejected it but won't tell me why. Does anyone understand what my deed means by 1/8 of oil and gas royalty?

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Permalink Reply by Tom McConnell on February 13, 2012 at 1:11pm

My take on that is that you dont have the right to lease it as you only have the 'royalty' rights of 12.5% (1/8). Someone else likely has the 'leasing rights'. Key word there is 'royalty' and not 'gas and oil 'rights'. Without knowing the additional deed history, I can tell you much more.

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Permalink Reply by Willi West on February 14, 2012 at 12:29pm

I would go back to Gulfport and ask why. I can't see why they won't tell you.

Then, look at the 1970 deed. It sounds like, the farm was sold to the coal company, but excepting and reserving something. Then, I guess, some or all of these rights were deeded to you, guessing that the deed to you is after 1970. In any case, go back to when the surface and subsurface rights were all together, and trace everything forward. It's also possible that, regardless of who owns the oil & gas, there is a valid existing lease that prevents signing a new lease.