HELP - Confusing Ohio situations...questions regarding deed with "estate for life" and more....

Hi, In 2006 we bought a few acres in Ohio which from what I understood at the time is my husband and I have a life estate interest, and when we die, it reverts to two people.  This parcel of three acres we bought was cut out from an original parcel of 20 acres back in 2002.  In part, our Deed reads as follows:


"Grantors..do hereby Grant, Bargain, Sell and Convey to the Grantees, John *** and Rita *** (husband and me), each an estate for life and to the Grantees, Rick *** and Janet ***, the remainder in fee simple, for their joint lives remainder to the survivor of them, in the following described Real Estate, to-wit: {legal description}...Subject to all leases, easements, rights of ways and restrictions of public records, if any...

My question is:  Can the other Grantees, Rick *** and Janet ***, lease this property to a drilling (or any other) company, while we are still living here (we intend to stay here until the Lord calls us home)?  Can we lease it? 

 

Also, I was told by the neighbors that when this parcel was originally with the 20 acres, they gave a lease to a well company and they currently receive royalties even though the well is not on their property but about 10 acres from their property line .  I am going to go to the courthouse and find the "public records" to see who the neighbors gave the lease to and when it expires (unless there is a website on the internet where I can search same). 

 

These neighbors are GUNG HO to jump on the Shale bandwagon and are being somewhat vague about it.  FYI, the neighbors are the parents of RIck and Janet ***, and the original 20 acre parcel was split three ways:  neighbors 5 acres, me 3 acres, balance to neighbor's daughter and son-in-law.  Daughter and son-in-law recently signed a lease for their 200 acres in a different town.

Also, I got an advertisement from a drilling company about a neighborhood meeting, however, the mailing address had Rick and Janet ***'s name on it with my mailing address.  We did not go to the meeting, and the advertisement was so unprofessional that the mailing label wasn't even on straight.  I was told by a friend who went to the meeting that several people in my area were signing leases because "the drilling company had an attorney present"....wow, unbelievable how gullible some people are...

I don't know if it means anything, but I have been paying all of the real estate taxes on this property since we have lived here, even though the tax bill  is addressed to Rick and Janet in c/o husband and me.

I hope someone can help as I do not have the money to hire an attorney and am feel that I am being kept in the dark about all this....

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0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on May 20, 2011 at 7:07am

Hi Rita,

the first step is what you already stated,

"Also, I was told by the neighbors that when this parcel was originally with the 20 acres, they gave a lease to a well company and they currently receive royalties even though the well is not on their property but about 10 acres from their property line .  I am going to go to the courthouse and find the "public records" to see who the neighbors gave the lease to and when it expires"

 

then you can start looking for the next answer.

 

also you mentioned that you pay a tax bill that is addressed to Rick and Janet but you are on the tax bill as owners, correct?  

P.s. I am not a lawyer....just noticing that you are asking us here at the forum for some direction...but clearly you need to see if a gas, oil, minerals lease already exists before you do anything else and surely you do need to understand your own deed and its provisions.   I do not know what state you are in...but a company by the name of Landex.com offers public records onsite for purchase to save and/or print (i know they do in Pennsylvania).    I also recommend that you call your courthouse and speak with someone who handles deeds as they may be able to explain your deed to you.    Some lawyers won't charge you to answer a few questions...they just want to know if you have a purpose to hire them so don't be afraid to call a lawyer to ask for advice...they may well help you determine if you even need a lawyer.  There are some wonderful people on gomarcellusshale that are lawyers and accountants...so reach out to someone here and they will let you know if their services are even required (for if you can lease then surely you may want to hire an lawyer who is familiar with O  & G contracts/addendums...and if you can lease there can be money then to pay a lawyer's fee if the O & G company provides upfront monies.

Permalink Reply by Adam on May 31, 2011 at 2:43am
You may want to look into how the Open Mines Doctrine affects you in Ohio (if at all). I am not familiar with Ohio law so it may not have any affect on you.
Permalink Reply by Sylvester Deal on June 7, 2011 at 5:20pm

Rita,

Your life estate for the property in fee simple gives you the right to receive royalty under the existing lease.  Notify the well operator of your ownership and they can let you know their requirements for proof to make a division of interest.  If all the twenty acre were pooled with the adjoining property for a drilling unit, your interest is less than 3/20.  In Ohio, well spacing is on 1ac for  1000ft well, 10ac for 2000ft well, 20ac for 4000ft well, and 40ac for deep wells.  It could be a deep well spaced on 40ac (interest 3/(20+20)) or a 4000ft well with a unit acreage of less than 40ac (interest 3/(20+x)).  The lease, well permit, plat, and completion would help determine the details.  Some Ohio counties have recent (about 25yr) recorded documents on line at www.landaccess.com, some have document images available.  The well permit and completion can be searched at http://www.dnr.state.oh.us/OHRbdmsOnline/WebReportAccordion.aspx.

 

Since the property is under lease, the current operator has control of drilling or dealing on a Marcellus well, no bonus for the landowners.

 

SD

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