Sale of a Portion of Oil & Gas Rights

We are interested in selling a portion of the oil and gas rights associated with the land we own in Coshocton County and would appreciate learning more about this approach.

Has anyone taken this approach and if so, how is this type of a transaction accomplished -- legal document? 

If an opportunity arises to sell the land, we would want to retain 49% of the oil and gas rights. 

Has anyone opted for this approach?

What type of legal document is required for this?

What about royalties?

Any information, shared experience or advice will be most appreciated.

TIA

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Replies to This Discussion

Permalink Reply by jonathan M. on November 1, 2014 at 4:27am
How is resource energy associated with chevron?
Permalink Reply by James Vanderink on November 1, 2014 at 4:38am

They are of subsidiary of Atlas which is owned by Chevron. 

1000  Commerce Dr. Suite 400

Pittsburgh , PA

Permalink Reply by jonathan M. on November 1, 2014 at 6:58am
Good to know james. Still doesn't change my mind about the present value of the area which is low. Like I said though I hope that changes just don't think that will happen for long time.
Permalink Reply by LERRET on November 1, 2014 at 5:33am

It is common to sell land and retain the mineral. It is more common to sell land and split the mineral 50/50. Why in the world would you want to take 49%???? You don't have executive control over a drilling unit anyway and you surrender nothing with a 50/50 split unless you keep only a royalty interest and turn executive control over your 50% to the other 50% which happens with a "ROYALTY" interest rather than a MINERAL reservation or deed. That would mean you were at the mercy of those with the other part of the mineral (be it 1% or 99%).  They would negotiate the royalty, receive the bonus and you only get the income.  NEVER CREATE A ROYALTY DEED.  You can deed off mineral rights as MINERAL DEED. Or when selling the surface with intact minerals, reserve the minerals in that deed.

Selling land is problematic in a play area when you retain minerals. The buyers want that mineral. But they often may settle if you offer to split the mineral 50/50. If you do that, I would create both the DEED of property with reservation and I would create a MINERAL DEED for your interest retained, thus having a good legal record of the chain of title.

Permalink Reply by evan on November 1, 2014 at 8:30am

What lerret said is absolutely correct and smart.

Permalink Reply by Patricia Moss on November 1, 2014 at 2:20pm

Thank you for this information. It is very helpful.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on November 2, 2014 at 8:53am

Patricia,

    Here is the website for the Gas & Oil Magazine and the Farm & Dairy weekly paper. Take a look for Mineral Buyers.

Also Kaufman Real Estate of Millersburg and Sugar Creek have been known to hold public on line auctions using Market Net Alliance for minerals.

www.gasandoilmag.com    farmanddairy.com

Permalink Reply by jonathan M. on November 2, 2014 at 1:58pm
If you call the companies advertising let us know how it goes. I would venture to say none of them would make an offer in coshocton...
Permalink Reply by Patricia Moss on November 3, 2014 at 4:14am

OK

Permalink Reply by Patricia Moss on November 3, 2014 at 4:14am

Thanks, Ron

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