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Permalink Reply by Mmmarkkk on April 28, 2010 at 2:12pm

I wouldn't do that if I were you. The mineral rights are worth way more than the surface rights. Depending on the laws in PA, the surface owner's rights may be trumped by the mineral rights owners'. That's the case in Texas. A surface owner cannot stop the drilling on his/her property if a company has legal right to the minerals. There are, naturally, some rules to follow though.

In Louisiana, if minerals are "severed" from the surface, but aren't produced over a long period of time (10 or 30 years, can't remember), then the mineral interests revert back to the surface owner.

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Permalink Reply by mark ayers on April 28, 2010 at 6:04pm

look at the deed and make sure it spells out oil & gas before you worry about it.

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Permalink Reply by Daniel on April 29, 2010 at 12:06pm

Thanks for all the input. I was told I have my facts a little messed up. Seems that the family only owns 50% of the mineral rights on 157 acres. Does anyone have any advice for this situation? I believe oil and gas is on the deed. Sorry for the mix up on the facts.

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Permalink Reply by Robin Fehrenbach Scala on May 1, 2010 at 10:23am

Daniel,
So from what I understand your family now owns half of the mineral rights in a good size parcel of land, right?

We are inexperienced in this for the most part up north but down south people own very small percentages of only gas in land and it's a normal thing. It seems no one gets land with the minerals in some areas there anymore.

You can just contact companies that are leasing in Sullivan County and start negotiating for the current best deal. It isn't necessary to be in agreement with the surface owners or anyone else. The gas companies regularly flip leases back and forth anyway so they don't care.

Or you could sell the entire interest to one of a zillion companies that buy mineral rights. They will tell you to go get your best lease (and keep the bonus money) then come back and get an offer from them. If you are in a good area they could pay a very large lump of money. But then you wouldn't own the gas anymore.

What you do depends on your situation. Do you need cash right away but want more income later? Then just lease your part. Want more cash and nothing to do with it after? Then lease it before you sell it and be done.

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