Replies to This Discussion

Permalink Reply by Finnbear on August 23, 2011 at 11:34pm

What you need to do is a mineral search. A competent O&G attorney can do this for a reasonable fee...

Permalink Reply by scott peterson on August 24, 2011 at 6:12am

Most title examiners are backed up with this work from what I found and are taking 30+ days and charging about $1,000.

Permalink Reply by Finnbear on August 24, 2011 at 12:57pm

You can take that $1000 right off the top of your tax liability. You can pay the attorney $1000 or you can pay $1000 in taxes. Either way your still going to pay it out if you get a lease.

I'd rather pay it to a local business than to Washington...

Permalink Reply by scott peterson on August 24, 2011 at 1:16pm

The drilling co. is going to run one regardless of wether you have one done or not so why not just let them pay for it.

Permalink Reply by Finnbear on August 24, 2011 at 3:22pm

The drilling co. will track down the mineral rights holder who may not be the landowner. If the landowner does not own the mineral rights and they were severed away in the distant past and are "dormant", the landowner can file an "Affidavit of Abandonment" to have the mineral rights declared abandoned and vested back with the landowner. This could result in a payday for the landowner that is in excess of what they paid for the land if they can get the mineral rights back and obtain a lease. If you let the drilling company do the title work, they will approach the mineral rights holder and offer them the lease. Been there, done that.

Permalink Reply by scott peterson on August 24, 2011 at 3:28pm

They are going to do it regardless though is my point.

Permalink Reply by Finnbear on August 24, 2011 at 3:51pm

By not being proactive and finding out exactly what you own/don't own, you could be walking away from a HUGE payday. Yes, the energy company is going to do the title work to cover their behinds but that could be too late for a landowner with questionable mineral rights ownership. Southern Ohio is full of properties with questionable mineral rights ownership. Once an energy company tracks down a mineral rights holder who is NOT the surface owner, there is NO chance the surface owner will EVER get those rights back. The energy company 's title people are very good at tracking down the heirs of people who reserved away mineral rights long, long ago. You can't go into a lease signing not knowing exactly what you own/don't own with regard to mineral rights but people do it every day. If there is any question about mineral rights ownership, the energy company will be forced to escrow the lease bonus and it will sit there until the issue is resolved. If they don't intend to drill soon, they may not resolve the issue for a few years, and the money will sit in escrow until then. Meanwhile, the land is tied up in a lease, and the mineral rights holder and/or landowner will be stuck waiting for the issue to be cleared up with no payment until it is, and they will not be able to take advantage of a possibly better offer that may come later.

Permalink Reply by Jeanette Krunich on July 7, 2011 at 1:04pm

Good information summary.  I have also seen the above in Guernsey County.  I have some acreage in Guernsey, but think it is prudent to wait a little longer.  Good to have some competition.  I have also heard it is good to have neighbors work together. 

Permalink Reply by Marc on July 7, 2011 at 7:30pm

What twp's are people in in Guernsey? I'm in Oxford.

Permalink Reply by Jeanette Krunich on July 8, 2011 at 9:29am

Washington Twp bordering on Londonderry Twp and Harrison County Line

Permalink Reply by Hoodwinked2 on July 8, 2011 at 10:02am

Jackson Twp bordering Valley

Permalink Reply by DM on July 8, 2011 at 11:53am

Valley Twp

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