Mineral Rights and a 2004 Ohio Law

Recently my parents were notified by an oil and gas company that my grandfather had kept some mineral rights on a farm he once owned in Guernsey Co. (Ohio.) My dad's ( and his siblings) share was 25 percent of the minerals. The oil and gas company rep told them that my grandmother had not transferred the minerals into her name when my grandfather passed away. Therefore, when my grandmother passed away the rights never transferred to her children, but there is a deed stating that my grandparents owned 25 percent of the minerals The oil and gas man told them to get a lawyer and have the rights transferred from my grandmother's name into their names......so they did ( at a cost of several thousand dollars) the rights were transferred and went through probate. They received a call today stating that because of a law passed in Ohio in 2004 they do not own the mineral rights. My question .......has anyone heard  of such a law and why in the hell did the lawyer and judge not know this..... before my dad and his siblings paid  them several thousand dollars to transfer the mineral rights. Any advise or suggestions would be greatly appreciated!!!!

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Permalink Reply by henry summers on November 15, 2013 at 1:32am

I think there was a law passed in 1989 called the Dormant Mineral Act. Then there was a revision in 2006 with a couple changes.  The way I understand it is if minerals were reserved , all or a percentage, then if a 20 year period goes by without any action, such as drilling , leasing , or some tips of savings event.  Then the surface owner can then file an afidavate and possibly get them back. There has been several cases heard in Ohio this year and almost all of the judges have decided on behalf of the surface owner..I'm not sure on all of th  particulars involved but it seems to be a one sided decision

Permalink Reply by catt on November 15, 2013 at 3:52am

Thanks for the info.....I found some more info on this law.....but can' believe a lawyer would not have know any of this info.

Permalink Reply by Ann Koch on November 15, 2013 at 6:26am

Have your lawyer go through all records, you need a 'savings event" .  Good luck, keep us posted.

Permalink Reply by Chris on November 15, 2013 at 7:28am

The whole 1989, 2006 DMA issue has been a gray area and will continue to be for some time.  1989 basically says that after 20 (23) years, of no savings events the minerals will automatically vest back to the surface,  2006 requires the surface owner to serve notice to the mineral owners or publish in the paper if the heirs are unknown.

Permalink Reply by catt on November 15, 2013 at 3:29pm

Thanks Chris.......we will be doing some more searching on this issue to find out where it stands.

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