Not just "oil, gas and other hydrocarbons" but "oil gas, sulphur, ruanium, fissional materials and oter minerals."

In a roadway agreement I was able to read, there was a clause called Grantor Reservation of Rights."  I think the purpose of the clause was that their roadway couldn't be disturbed to access mineral rights underneath.  But the interesting thing was that instead of the standard "oil, gas and other hydrocarbons" it now says "oil, gas, sulphur, uranium, fissional materials and other minerals."  It strikes me as odd that it's been changed.  Are they thinking they might be able to find uranium further down???

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Permalink Reply by David Perotto on January 13, 2013 at 2:40am
Great question, I hope someone has insight. If O@G companies have interest in these "other" minerals we landowners need to watch our leases. There may be other revenue streams that could be lucrative. Another question would be what is the commodity prices/value of these minerals?
Permalink Reply by mkf on January 13, 2013 at 7:25am

The clause actually says: 

"4. Grantor Reservation of Rights.  Grantee does not acquire by this Roadway Easement, but expressly takes subject to, and Grantor reserves to Grantor and to Grantor's heirs, successors and assigns, each and all of the following rights in and to Grantor's Land:

(a) All oil, gas, suplhur, uranium, fissional materials, and other minerals ("Grantor's Minerals") under the surface of the Roadway Easement to be acquired; provided that Grantor shall not be permitted to explore, drill, mine, produce or operate for Grantor's Minerals on the surface of the Roadway Easement, but will be permitted to extract Grantor's Minerals from under the Roadway Easement by directional drilling or other means, from land located outside the boundaries of the Roadway Easement, so long as the Grantee's use of the Roadway Easement for the purposes set forth herein is not disturbed and the Roadway Easement, with its related appurtenant facilities, are left with proper, sufficient permanent support and are not endangered, obstructed, injured or interfered with; and

(b) Grantor further retains the right to use the Roadway Easement except as may be necessary for the purposes granted to Grantee."

Anybody have any idea what this is saying?  And what they mean by "expressly takes subject to"?

Permalink Reply by mkf on January 13, 2013 at 11:12pm

I still don't like it in there.

Permalink Reply by mkf on January 14, 2013 at 6:30am

Any recommendations on an attorney?

Permalink Reply by Gas Patch Native on January 14, 2013 at 9:35am

If I'm reading this correctly, I believe that you are the Grantor. The Clause above states that you are reserving these for yourself. If it were me, I would have it rewritten that the easement granted is strictly a surface easement and has no effect on any right to oil, gas, or mineral underlying the easement. I would also state that the road may be relocated within reason for the purpose of exploration of oil, gas, and/or minerals, at Grantor's (your) expense. 20 years down the road, you don't want to limit yourself on the exploration of underlying minerals beacuse they won't move the road.

 

Also, if you have trouble understanding the legal language in any agreement, always take it to a oil and gas attorney. it only takes one word to make a huge difference in a good and bad contract.

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