I am so confused....pertaining to selling mineral rights. And being HBP) Help?

   Ok, for example:

   Let's say I have 100 acres that are held by production.

   Someone calls and offers to purchase mineral rights and we agree to selling 30 acres of mineral rights.

   Here is the question..... They agree to such and such amount on 30 acres of the 100. Which 30 acres would it be? Wonder if someone comes in and wants to do something on the 100 acres, where does that 30 acres come into play? 

  If you sell mineral rights, you are selling 100% of those rights on that agreement of 30 acres. What if something is done on the other 70 acres ??? When in the contact, you are just saying 30 acres, which 30 acres?

  I hope that made sense.

Views: 628

Reply to This

Replies to This Discussion

It would be an undivided percentage.  Using your 100 acres, 30 acres represents 30% of the land.  So the mineral company would have an undivided 30% right to your minerals.  If a friend said they wanted to own 30% of your car, you wouldn't designate the trunk to them only.  They would have an interest in the whole car.  Hope that makes sense.

Now, if you had one parcel that was 70 acres and one parcel that was 30 acres, you could sell all the rights to the minerals under the 30 acres tract and you would keep the minerals under the 70 acres tract.

Normally you are selling an undivided interest to all the minerals unless otherwise specified in the contract.

BIG is exactly correct on this. Well said. Especially the trunk part

The trunk example was good  :)  Thank you  :)


© 2020   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service