RE: Mineral Rights

I have many of the discussion on this site.  I have a question regarding Mineral Rights.  My cousins have a very small plot of ground.  They have received several letters regarding a lease from one of the energy companies.  They felt that it was SO miniscule that it was not worth bothering with as the plot is small.  They are ALSO unsure as to whether they have the rights to the minerals on their property but CONTINUE to recieve letters regarding leasing their property.  It is VERY EXPENSIVE to RETRIEVE the mineral rights as I understand it.  Not worth their time and effort.  They wondered WHY the energy company continues to send letters to them.  Surely the company knows what a small plot of ground they have but IS the Energy company AWARE BEFORE sending out these letters about WHO has the MINERAL rights to the PROPERTIES in the area that they are INTERESTED IN?  In addition, the cost of an attorney for such a small plot of ground is ALSO EXPENSIVE not worth my cousins time and effort. 

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Permalink Reply by ray schmidt on December 12, 2011 at 1:44pm

some members of my family live in a small town in eastern ohio and only have 1/4 TO 1/3 acre and the oil companies leased the whole town. remember they can go thousands of feet horizontally. 

Permalink Reply by Jack Straw on December 12, 2011 at 2:38pm

It may be that they need this small piece of land in order to drill where they ideally want to drill.

The horizontal leg (thousands of feet below the surface) might be too close to where they wish to steer the well bore for them to drill without your cousin's land.

Just a thought.

All in my humble opinion.

One size fits most.

 

JS

Permalink Reply by Larry F on December 12, 2011 at 4:07pm

A landman told me "you won't get the letter unless they are sure you own the gas rights". If the land is in PA, the mineral rights are separate from the gas and oil rights. Someone did the research before the letter was sent. I was also told there are very few properties in PA that do not own gas and oil rights.

The gas wells around me are averaging $10 - $30 per day per acre...  1/3 of an acre has the potential to earn 300/month, 3600/year. Certainly worth it to pay a lawyer 100-200 to read a lease (that's all it cost me). Heck, if nothing else it will pay some of your utilities.

Good luck,

Larry

Permalink Reply by Mackenzie Malone on December 14, 2011 at 5:46am

Larry, Thanks for offering this SPECIFIC information for my cousins CONSEQUENTLY,  the LETTER sent to the PROPERTY OWNER DOES NOT VALIDATE their  OWNERSHIP of the MINERAL RIGHTS.  I CALLED  REX ENERGY (CORPORATE HEADQUARTERS in Hrrisburg) for MY Cousins.  They told me that they ask for a LEASE INITIALLY from the PROPERTY OWNERS.  THEN, THEY RESEARCH the OWNER of the MINERAL RIGHTS.  IF the OWNER of the PROPERTY DOES NOT OWN the rights to the MINERALS, THEY are in for AGGRAVATION and PEOPLE ENCROACHING on their LAND for the DURATION of their LEASE form.  In addition, the SMALL PLOT of ground PROPERTY OWNER has all kinds of PROBLEMS with the sale of their PROPERTY and HOME when they go to sell it as they must NOW tell the FUTURE BUYER about the ENCUMBERANCE of the LEASE for the MINERAL RIGHTS owner.  In addition, the SMALL PLOT of ground property owner will NOT RECEIVE any COMPENSATION NOR MONETARY REWARD for their IGNORANCE in signing the LEASE for their SMALL PLOT PROPERTY.  The ONLY PERSON who recieves COMPENSATION, is the MINERAL RIGHTS OWNERS.  In addiotion, they are in for YEARS of PEOPLE ENTERING THEIR PROPERTY and MAKING USE OF IT with NO BENEFIT to them.  And the final STRAW is the may have their WATER CONTAMINATED and have to provide a sample of their water to the lab so that they can fight in court later on. The ONLY people who BENEFIT from Marcellus are LARGE PROPERTY owners who own the MINERAL RIGHTS.  So for all of you who do NOT own the MINERAL RIGHTS to YOUR PROPERTY.  DON'T SIGN that LEASE.  I realize that there are "landmen" on here who will ATTEMPT to reassure you but that is a DECEPTIVE move that BENEFITS them and THEM ALONE.

Permalink Reply by Matt Williams on December 13, 2011 at 6:25am

Get that money, I have personally signed leases for 1/4 , 3/4 and 1.5 acres in WV.

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