When oil or coal companies merge and or bought out over 50 years, how .. how does that effect the initial leases?

My parents sold their rights to mine "Coal" on 460 acres in Greene county, Pa, in 1950 to the "CONSOLIDATION COAL COMPANY".  Since then, that company merged, changed hands several times eventually to Conoco then CNX.....However in the orriginal deed they retained the rights to the gas and oil. How do I find out if the coal rights are still owned by the current company as there has been no deed change recorded in Greene county and what the actual status of the gas & oil rights are on the property ? ? ? ? ? ? ?

Dudley Rainey

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Permalink Reply by Jed Clampett on October 8, 2013 at 2:23am

When real estate,mineral (coal) or gas/oil rights are sold, the wording is usually "heirs or assigns"  which means to any heirs or whoever they assign the rights they are being granted in the original sale.  So all the current mineral owner has to do is prove they purchased the assets of the old company, and reference your (parents) deed where your parents sold the coal rights.  If your parents never sold or leased the oil/gas rights then they still own them.  Had they been sold/leased it would be recorded at the court house.  So you either have to go do the research or hire somebody (who probably can do it faster than you) to provide a title report (stating what was sold/leased when and to whom or stating what your parents still own).

Permalink Reply by Dudley rainey on October 8, 2013 at 4:16am

Thank you...Yes the orriginal lease sez all of that and the last sentence states" reserving, however, to the owners thereof, their heirs and assigns, the right to drill and operate throught said vein of coal for oil and gas withouth liability for damages."  (the deed is for coal mining solely).

So at this point do I need an attorney to follow up on who has the deed currently or is there a way to find out who currently has the lease. Pittsburgh Consolidatioin Coal has gone thru numerous names and merges and I believe is now CNX gas?

Dud

Permalink Reply by Jim Litwinowicz on October 8, 2013 at 5:46am

Dudley; from everything you said, you own the G & O rights but if the coal was sold, not leased,  then the coal rights are gone...don't worry about them. Great that your parents were smart enough to not only reserve the O & Gs but to also allow for drilling through the coal without liability.  They had a good attorney.

You do not need to do a title search unless you want the peace of mind. If and when you sign a gas lease, the company will do its own title work with its own people before paying you. As far as I know, having done the title work before hand will not increase the value of the lease offer  since they will do it themselves anyway.

I am not an attorney so it would be wise to talk to one that is knowledgeable in leasing these new wells. Good luck.

Permalink Reply by Josh Willis on October 9, 2013 at 3:22am

It's actually Consol Energy. CNX gas is just a division

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