RECEIVED CHECK FROM ULTRA PETROLEUM, NOW TOLD WE DO NOT OWN MINERAL RIGHTS

We own a 4.62 acre plot on Laurel Crest off Shin Hollow road in Gaines. We received a check for a five year lease this past august from ultra petroleum. When I called the ultra rep today to check on the status of any royalites that might be forthcoming, he told me that he was terribly sorry, but that a mistake had been made in mailing checks out to landowners in my area, that, in fact, we did not own mineral rights, that dominion resources had severed the rights to these parcels back in 1937, but that we could keep the check since it was their mistake. Just curious, has anyone else run into this situation. Needless to say we are a bit shell shocked by this revalation. Any and all info would be appreciated

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Replies to This Discussion

Permalink Reply by Ann Ticopa on October 10, 2010 at 5:10am
Reply to Bill.
I don't know much about mineral rights, except severed rights is something to steer clear of when buying land. Afaik there aren't commercial amounts of coal in my part of TC and, until T/BR, there were few gas wells. (Probably 50 years ago, there was a little talk about the possibility of uranium mining.) From the number of people I've read about that were surprised that they only owned surface rights, I don't think it's necessarily spelled out in the deed ... either way.
Permalink Reply by Sara A. Worsham on October 10, 2010 at 5:57am
Bummy, In Pennsylvania, a mineral reservation does not reserve oil and gas unless oil and gas are specifically stated in the reservation. I have found reservations back as far as the late 1800's, but have also found that most surface owners do own the oil and gas......this is why landmen must research the property back to into the 1800's- to make sure that there are no prior reservations of oil and/or gas. It is done on a tract by tract basis. Mineral rights are always transfered unless the deed specifically reserves those rights.

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