I have been told different things about what the low oil prices mean to the drilling boom in the Utica, especially to the Ohio boom where we have more oil than gas... Does anyone have any accurate info on this subject....

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Easiest way to avoid partition is to sell royalty interest rather than mineral rights.

I wonder that if in the event that no well / lease / Royalty payments exist is it common to sell 'Future Royalty Interest', (and in so doing block / avoid partition) ?

Thank you Dex.
Thank you for your reply here Dexter.

Seems more than a little counterintuitive but if that's the way it is then that's the way it is.

Earlier you suggested that selling a 'royalty interest' instead of the mineral rights would be the best way to counter any 'Partition' action.

Is that still your understanding Dexter ? Have you seen that tact put to use to block 'Partitions' from occurring ?

Prior to all of these 'Partition' discussions I thought that when someone sold a portion of their mineral rights that the new owner owned and had total control of only the mineral rights that were purchased but no control over the mineral rights that weren't.

I wonder if there's language one could put in the sales agreement to preclude a 'Partition' from forcing a sale upon the original owner of the mineral rights if unwilling ?
Looks to me like there are more ways to get taken to the cleaners than there are remedies to not.

Thank you Philip.

Thank you for taking the time to explain that to me.  You have given me much to think about.....MP in Or.

Philip and Dexter,

I thought in Ohio a landowner (who owns the suface and minerals) could sell only a portion of the interest in the mineral rights if that would be his/her choice. That would mean to me that the purchaser would only own what was purchased as defined in the sales contract. Any 'Partition' would change the sales contract. How can that happen ? Can the sales contract preclude partitions ?

Joseph, unless you have your property subdivided and sell one of the parcels, when you sell part of your minerals you are becoming business partners with the entity that purchased them.  When one of the partners wants out of the partnership they can force a sale. 

Thank you for your reply here Philip.

Seems more than a little counterintuitive but if that's the way it is then that's the way it is.

Earlier, Dexter Green suggested that selling a 'royalty interest' instead of the mineral rights would be the best way to counter any 'Partition' action.

Is that your understanding also Philip ?

Prior to all of these 'Partition' discussions I thought that when someone sold a portion of their mineral rights that the new owner owned and had total control of only the mineral rights that were purchased but no control over the mineral rights that weren't.

I wonder if there's language one could put in the sales agreement to preclude a 'Partition' from forcing a sale upon the original owner of the mineral rights if unwilling ?

In ND its a sure thing in the Bakken formation and any well is only a place holder to secure a lease;the horizontal when frackked can only harvest a 300 foot wide swath 2miles long, so they start next to the section line and many years later bring another rig in and do it again.Continental is harvesting from several layers below the Bakken from a single pad, and you can find out about this by a search

Well, maybe it won't be all that bad.... I would hate to see all this blessing suddenly come to a screeching halt..... If only the Saudis would cut production the price would go back up slowly... Does anyone know how A.E.U. is reacting to all this?

We can't afford to lose either - so let's not lose.

We need our G & O industry to pull for us - forget the others.
Clean, abundant, economical domestic energy.

I'm not hating it and that's for sure.

The domestic G & O industry and our government ought to do what it takes to keep it that way for all of us here in our country.

Drill baby drill.

IMHO.

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