Replies to This Discussion

Permalink Reply by Nancy Mosley on November 18, 2012 at 2:41pm

Have you or any of the family been paying property taxes on the mineral rights? This would be to Brooke County Tax Office.

Permalink Reply by Joe on November 18, 2012 at 3:04pm

We're aware of the tax obligation on the mineral rights, and also of which taxing authority receives the payments.  Is the purpose of your question to inform me of that? I'm not sure my responding regarding my family's tax payment records is pertinent in this context.

Permalink Reply by Nancy Mosley on November 18, 2012 at 3:22pm

I think that if you (or some family member) has been paying taxes on this property through the years, there is no question about ownership of the mineral rights. However, if there has been a gap in this tax payment, then the property can be sold for back taxes. Sometimes there are no buyers, but the heirs who had not paid taxes would have to redeem the property. I am not an attorney but this is my understanding of West Virginia law. I would think that if you (the heirs) are current on taxes, and listed with the county as owners of the OGM rights on the tract, then the surface owners would have no way to be successful. Your family, I would think, would still have to get the back royalty and lease payments if these have been unclaimed.

Permalink Reply by Joe on November 19, 2012 at 6:03am

Thanks for your helpful input.  I don't have access yet to a full history of tax payments over the years, and the rights are not yet held by my generation.  However, I'm not sure how nonproducing minerals are taxed by the county.  I would think producing minerals would be more highly taxed than nonproducing minerals.

I think what I probably need to do is advise my family to retain a mineral rights attorney licensed to practice in WV (not necessarily a firm headquartered in Brooke County or even WV).  Complicated and mysterious stuff! 

I greatly appreciate the helpful information in your second reply, and the time you took to write it.

Joe

Permalink Reply by Nancy Mosley on November 20, 2012 at 3:33pm

Hi Joe,

There is a formula for non producing minerals that I was given by the assessor's office in the county where my minerals are. The formula is from the WV State Tax office. It is based on the acreage and what portion of the OGM you own. There is a minimum valuation of $100. This assessed value, based on this formula, is then multiplied by the local tax rate to get the property tax.

Nancy

Permalink Reply by Joe on November 20, 2012 at 4:11pm

Thanks once again, Nancy, for this helpful information.  Soon I will either contact the county tax office or maybe read the tax code and attempt to use calculations specified in law.  I must admit that I find contemplating tax payments less pleasant than collecting royalties though :).    JOE

Permalink Reply by Nancy Mosley on November 21, 2012 at 3:25pm

Unless the production is large, the tax is small. In Ritchie County, the county property tax on a minimal valuation property is $2.18 for the year!

Permalink Reply by Joe on November 21, 2012 at 4:00pm

That is heartening because as yet, the minerals are untapped.

Permalink Reply by Joe on December 13, 2012 at 3:32pm

possible I suppose but not the only possible outcome

Permalink Reply by Matt N on August 18, 2013 at 4:55pm

Did you lease yet?

Permalink Reply by JK on February 21, 2014 at 3:17am

Joe,

What was the result of this?

We are in a simular situation having paid taxes on the O&G rights since the 1930's.

Then we find out the property, both surface and mineral rights, have been sold many times.

We also found out our rights have been leased and drilled 3 years ago!

We are in the process of quieting title and then who knows what will happen.

There are big names in the past ownership and title ran by them swearing ownership.

Hopefully soon we will have a resolve in our favor.