Farm acreage leased with Antero: 3 years later we learn we have 3 more acres

We signed a lease with Antero 3 years ago for our 101 acre farm.  They paid us.  No problems there.

However, we just surveyed our farm so it could be sold and were told yesterday from the surveyer that we have 104 acres.  Do we need to let Antero know?  Would they have to pay on the additional 3 acres?

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Permalink Reply by Kyle Nuttall on June 30, 2015 at 12:58pm

It looks like my last reply got cut off.

It's not too much to ask to see what they have proving there was an actual mistake made.  Usually, as long as you're reasonable with them they'll give you the information you want.  They may redact unnecessary information from it, but they should be able to show you that you don't own the one parcel and do own the other.

Permalink Reply by Suzy on June 30, 2015 at 5:14pm
Thanks. Duke has always been nice. He sent me the info on the new parcel ... I guess I would like to make sure I'm not on the one I'm signing away. I haven't signed anything yet. We originally worked with Joe Wilson. So what Landmen do? Free-lance to find heirs? For different companies?Interesting. Do they ever work for the Heirs?

What kind of law do you practice? And where?
Good night. It must be late where you are.
Permalink Reply by Kyle Nuttall on July 1, 2015 at 3:21am

Landmen do sometimes work for themselves.  In theory, landmen are independent contractors.  In reality, most of them work for just one company at a time and the IRS rules would make them actual employees, but because the oil and gas industry has so much clout the IRS hasn't enforced it.  I have a couple of landmen that do title work for me, and they are truly independent contractors.  There are a few landmen out there who buy and flip leases, but they're pretty rare.

I do almost exclusively oil and gas.  That's why I spend time on this forum and blog about oil and gas on my web site.  I'm getting rid of a few random cases that I have left over from doing some Public Defense and from helping another attorney close down practice.  I'm located in Buckhannon, WV.

Definitely take your time and be sure you actually own what you're signing for.  Oil and gas companies make mistakes.

Permalink Reply by Peg Murdock on November 5, 2015 at 1:26pm

A company purchased 40 ac of our 101 ac but took ALL the lease rights with them.  Is that legal and why did they do that?

Permalink Reply by Suzy on November 5, 2015 at 3:24pm

Hi ... when you say they took All the lease rights ... does that mean Surface or Mineral ... and do you mean on the 40 ac or on the 101?  If it is not listed in the Agreement that you signed ... they should not be allowed to take what you did Not sell to them..  You should talk with an attorney. 

Permalink Reply by Peg Murdock on November 5, 2015 at 9:55pm

We sold the mineral rights on 40 ac, they took the executive rights along with it for all 101 ac.  Their attorney said it was customary in many cases.  We are trying to get back the executive rights for the mineral rights we reserved.  Just wanted to know if this is common.

Permalink Reply by Nancy Mosley on November 6, 2015 at 3:52am

Peg, I am trying to understand how they can take executive rights on the full 101 acres unless the deed says it. I have not seen that in any of the deeds I have seen. Sometimes people sell the surface and part of the minerals, and also grant rights to lease, collect rentals (bonuses) etc but the deed needs to say this.

Permalink Reply by Peg Murdock on November 6, 2015 at 3:57am

that is why we are shocked.  This is what the company that was buying the 40 acres of mineral rights said to me yesterday about why they took all the executive rights:

  "We do whatever our certifying attorney recommends. From our experience when there is a reservation on the royalties the language in deed can sometimes be complex."

Permalink Reply by Suzy on November 6, 2015 at 5:16am
Hi Peg ...
Nancy has a vast amount of knowledge dealing with everything relating to mineral and surface rights. She knows it because she has already been through the Wars. I am a Realtor in Arizona. We are saying the same thing ... if you are selling something relating to property with a Deed ... it has to be written on the Deed. If you are selling Or Not Selling nor Including something... Put it in the Deed. The Deed is the Bible. I have never heard of Executive Rights. Get another Attorney. Call the County and ask them. Google ER and see what pops up. Nancy is a good resource.
Permalink Reply by Suzy on November 6, 2015 at 5:21am
If the language is too complex or too vague in the Deed ... have them add additional verbiage to clarify the intent. You own the land and have rights. Stand Tall and Proud. You need your own Attorney.
Permalink Reply by Peg Murdock on November 6, 2015 at 5:33am

We already did the sale last year.  We have been trying to fix it for the last year with no avail.  Their attorney recently sent paperwork to the investment company that purchased the land from the mineral rights company stating that the executive rights need to come back to me and my husband, but that investment company is not complying.   

Permalink Reply by Peg Murdock on November 6, 2015 at 5:22am

We don't have an attorney.  We sold the mineral rights to a company who had an attorney.  We never thought to get one since it was a two party sale with a well known company. 

Executive Rights, from what I am told, are the leasing rights.

Who can I contact at the County/State to ask them if this was even customary.

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