Replies to This Discussion

Permalink Reply by Finnbear on December 6, 2011 at 1:09pm

What is your take on this situation?

Current owner purchased the land in April 1998. 

In June 1974, a previous owner reserved the rights to the oil and gas when they sold the property.

This person died without ever doing anything with the oil and gas rights. No lease was ever sold, no well was ever drilled.

Did the oil and gas rights automatically vest back with the surface owner after June1994?

Permalink Reply by Belmontlandowner on December 6, 2011 at 2:14pm

That's how I read it. I can't find anything in the law code prior to the 2006 revision that says that the Abandonment has to be recorded. It seems that per the law no recording was needed because it was an automatic vesting if no event occurred in the 20 preceding years. Is that how you would read it? Per the OSBA article it appears that the court viewed it that way in the case of Wiseman v. Potts. That is what I need a GOOD O&G rights attorney for. Most only seem to reference the 2006 revised code. But for those of us who owned the land prior to 2006 revision the law as of 1989 should apply per the article and also what I read for house bill 288 amendment which modified the previous code. Any comments or opinions on this would be greatly appreciated. 

Permalink Reply by Finnbear on December 6, 2011 at 10:29pm

Any idea where we can get a copy of the 1989 law as it was written?

Permalink Reply by Belmontlandowner on December 7, 2011 at 9:25am

 

 www.legislature.state.oh.us/bills.cfm?ID=126_HB_288_PH

This web page shows the original language of the law, then any added language to the bill is underlined, while any voided language is crossed out.  

I will look and see if I can find an original.

Permalink Reply by Hunter on December 26, 2011 at 11:58pm

Does anyone know how original law applies to this situation. Property is sold  to owner A in 50's with reservation on oil and gas but had zero activity up and past 1989. Did the minerals automatically transfer back to  owner A at that time? Then owner A sells farm to owner B  in 1990's with no reservations, does this mean owner B  now legally owns oil and gas rights????

Permalink Reply by 0i7okn54zwbdo on December 27, 2011 at 12:33am

There is no "automatic transfer" back to owner A.  You must actively seek to get them back.  If A sells to B and does not have the rights back then no, B does not get the rights.

Permalink Reply by Hunter on December 27, 2011 at 12:55am

The Dormant Mineral Act, found in R.C. 5301.56, was first enacted in 1989. The original statute provided that a severed mineral interest is deemed abandoned and reunited with the surface interest after 20 years unless the mineral interest was in coal or was held by the United States, the state of Ohio or by any political subdivision of either. Alternatively, the severed mineral interest was not deemed abandoned if, within the preceding 20 years:

• The mineral interest was the subject of a recorded title transaction;
• There had been actual production by the holder of the mineral interest;
• A claim to preserve the mineral interest had been properly filed; or
• A separately listed tax parcel number had been created for the mineral interest.

If this was not automatic and no recording was required then how was it done????

 

This approach was taken in the 2010 case Wiseman v. Potts.⁶ The court applied the 1989 version of the Dormant Mineral Act in granting summary judgment on the plaintiff surface owner’s claim that the defendant mineral interest owner had abandoned his interest. The surface owner argued that there was no evidence that a saving event had occurred during the 20 years prior to 1989. Therefore the interest was deemed abandoned and vested to the surface estate owner.

 

If this case is how it is described it seems surface owner just proved that nothing had been done between 1969 and 1989.  THis case was in 2010 well after the newer statue was enacted. There is alot of land that had no saving events between 1969 and 1989 in ohio!!!

 

 

Permalink Reply by 0i7okn54zwbdo on December 27, 2011 at 9:26am

The statute allows a surface owner to get their minerals back by either A) sending a certified letter to the mineral owner stating that they want minerals back or B) publishing their intent to reclaim their minerals In a circulated newspaper. If the mineral owner fails to respond within the time allotted by the statute (60 days I believe but don't quote me on that) then the minerals may transfer back. If the mineral owner responds that is a tacit acknowledgement of mineral ownership and counts as an action by said mineral owner. There are mineral reservations from the 1800's that still stand today be ause landowners have not gone through the proper channels to reclaim their rights. It's more complicated than it seems and my advice to anyone in this situation is the same: get a lawyer. I'm not a lawyer and I don't know the ins and outs of the law.

Permalink Reply by Finnbear on January 27, 2012 at 10:01am

More reading on the subject in the attached file.

Attachments:

• Crude Awakening.pdf, 1 MB

Permalink Reply by Belmontlandowner on January 27, 2012 at 10:06am

Did you receive the file I sent you?

Permalink Reply by Finnbear on January 27, 2012 at 11:15am

Yes. Thanks

Permalink Reply by Thomas on February 6, 2012 at 6:46am

Does anyone have a copy of the court record for the Wiseman v. Potts? I have been trying to locate a copy of it but can't find it anywhere. Thanks!

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