Lawsuits in Ohio and Supreme Court of Ohio regarding Mineral Rights Holders

We received a lease check from Hess Oil last year as a payment for a five-year lease. Now they are drilling, but we are not receiving a royalty check. We have been told the oil companies in Ohio are holding royalty checks for those who own mineral rights but do not own the surface land. We are told they are waiting to see who gets the money until the State of Ohio Supreme Court makes a decision on if the recipient will be the mineral rights owners or the land owners. Does anyone have further information on this? Here we are paying mineral rights taxes to Harrison County, yet we may not even get any money from our mineral rights! If you have information, we will be most appreciative. 

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Permalink Reply by bessieblues on March 28, 2015 at 6:37am
It will probably be quite a while before a decision, however I believe both versions will apply. It is a chronological task to walk through the 89 DMA,and then the 2006 amended DMA.
Permalink Reply by RITA KERR on March 28, 2015 at 4:34pm

deuchen and bessieblues, thank you to both of you for responding. I appreciate it.

Permalink Reply by Tony Yurina on March 30, 2015 at 3:53pm

Rita,

I only have an opinion.  It will be virtually impossible to undo all the wrongs or mistakes from the 1989 to 2006 period, so it is my opinion that this period may be grandfathered as is and where is.... 

How do you go ask a person for one or two million dollars back that paid off a loan, bought two new tractors or cars, etc.... paid insurance on them or even re-mortgaged a mineral asset or sold it after leasing it???  I think there is too deep of an entanglement to go back and straighten all this out....fair or not, it may be best to freeze the state of affairs for a given mineral interest as it is recorded, leased or sold as is.... again just my opinion.

Den:  Below your comments would align with the Ohio constitution.  If surface owners did not pay a fair value for both land and mineral rights and officially record as such, then they should pay to  obtain the mineral rights regardless of 20 or 30 years, time should not be of issue, only our guiding constitution.

Permalink Reply by Mark Anders on May 4, 2015 at 8:43am

The issue with paying fair value for the minerals is that they didn't have a value back then... and technically you can't put a value on them now. It would be impossible to have them appraised.

Permalink Reply by Den on March 29, 2015 at 10:16am

If someone sold land and kept the mineral rights, why should the current landowner get it back just because time has passed?  Landowners should have to buy the mineral rights back if they want them, if they only bought the land and not the minerals.

Permalink Reply by Eric on March 31, 2015 at 1:44am

probably because you didn't or don't pay taxes on them to preserves them like land owners do?  that will probably be the root issue at hand.  why does a surface owner owe taxes to preserve their rights to own them but mineral owners do not?  i think the courts should answer that question. 

Permalink Reply by Jonathan H on March 31, 2015 at 4:43am

The law applies to Dormant mineral rights - those that have been abandoned; if proper notice is given, then long ago owners, or more likely their descendants, have the opportunity to claim the rights, so it isn't the taking of property, but the reassigning of abandoned property - again, this is IF proper notice was given; there have been lawsuits over that which are part of the uncertainty surrounding the DMA.

Permalink Reply by Dott on April 3, 2015 at 10:01am

In Tuscarawas County, Ohio the mineral rights owner (no surface) does not get levied taxes until Production, although the County is looking at that changing.  I and my heirs live out of state. My concern is that when I pass even if my young heir changes the title (and address) to himself, as you know

people can often move around a lot. So if he does not continue to update his address with the County and 20 years pass without production and the surface owners stake claim without locating him he can lose out.

It just doesn't seem right.

Permalink Reply by RITA KERR on April 15, 2015 at 10:23am

Dot, I agree, it doesn't seem right. Stress the importance to your children and grandchildren in keeping their address updated. Though my father-in-law moved to California in the 1960s and then joined us here in Idaho a few years ago. The oil companies found him easy-enough. In fact, in droves. I look forward to the final outcome of the Supreme Court decision, hoping they use discernment and wisdom in what they decide. It isn't right for something to be taken from someone without reimbursement. Thank you for your comments. Be blessed, Rita 

Permalink Reply by williet57 on April 15, 2015 at 10:35am

I am confused,we own the mineral rights in Harrison County on couple acres,we sold the surface land and kept the mineral rights. What type taxes are you paying to Harrison County. Never heard of mineral right taxes? They are not drilling as of yet on our land?

Permalink Reply by RITA KERR on April 15, 2015 at 11:01am

Our family has been paying taxes to the Harrison County Treasurer's office for the mineral rights we own in Harrison County for the past couple years. Like you, we do not own the surface land. We have family that live locally and they became aware when the first installment was due, paid it, and we reimbursed them for our share. This year we paid our share ourselves. If there are multiple people who own the mineral rights, i.e. lots of family members, Harrison County is only sending out one bill and leaving it up to the family members to decide how it gets paid. They told me when I called them that it isn't feasible to send out bills to a large number of owners. I recommend you contact the Harrison County Treasurer's office. Their address is 100 West Market Street, Cadiz, Ohio 43907 and their telephone number is 740-942-8864. I hope this information helps you. They were not drilling on our land when we paid last year's taxes. 

Permalink Reply by williet57 on April 15, 2015 at 11:09am

That is news to me Thanks will call them tomorrow.It does not seem right that there should be taxes on this,but I wish they would put this money to good use in the county. We do not live there but visit  once in a while and the roads back there need a lot of work.Thanks for the info

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