If you own mineral rights to a piece of property, but not the actually land, does the land owner or the mineral rights holder own the water rights? And this is not surface water, this is water that would be drilled for and used for fracking.
Pro sandy said it well.OverSeas AG said:
I tends to consider Mineral rights about the way I do Eminent Domain. Seems it has turned out to be a scam for the land owner. Yes yes i see some benefits to it, but.. truth is, it really is not of benefit to the land owner. They are typically not getting the value of what they were paid for the rights.
ItsA&InotA&M said:
Prior to leasing the mineral interest, would it be possible for the surface owner to transfer the ground water rights to a seperate entity ?
If so, would this strip the oil company lessee of any right to a reasonable use of the water without first dealing with the entity owning the separate water rights?
I.e. The oil company would get minerals from one entity and water use from another entity.
Hope the questions make sense.
sunchaser said:
There have been a lot of discussions over the years about the mineral interest trumping the surface interest on this board. Especially when the mineral and surface interest have different owners.
It's all a function of the leasing agreement. If for example you own the minerals and surface on 40 acres. You can lease your mineral interest and a term of that contract can prohibit surface activity. Likewise, "I think" you could cover no ground water usage. Maybe queso can address that once he gives up pursuit of that bad pickup driver via his bicycle.
Back to the OP, "I don't think" an operator would be able to produce ground water and utilize it for fracking wells off lease....unless it was so stipulated in the contract.
i mainly represent E&P companies, but for some folks I'll do mineral or surface owners' protections for a lease or purchase of minerals. You can define their ability to use water in a mineral lease or deed, and prior to granting a lease or deed, you can also transfer those rights to another entity, yes. if the transfer is recorded properly, will bind a subsequent lessor or purchaser.ItsA&InotA&M said:
Prior to leasing the mineral interest, would it be possible for the surface owner to transfer the ground water rights to a seperate entity ?
If so, would this strip the oil company lessee of any right to a reasonable use of the water without first dealing with the entity owning the separate water rights?
I.e. The oil company would get minerals from one entity and water use from another entity.
Hope the questions make sense.
i disagree strongly with that, we do E&P work in about 17 states, and texas is not the worst by far.Mas89 said:
Texas landowners have some of the worst eminent domain and mineral rights laws of all 50 states. Every two years our farm and ranch groups try to pass better legislation for landowners. Problem is that many of our rhino legislators and elected officials are soon taking the big money after getting elected. We had a great eminent domain bill that easily passed both the house and senate in 2007 { hb2006 } iirc, after the session closed, the governor refused to sign it into law, at the GREAT SUPRISE TO ALL THOSE who had voted for it and those who had worked tirelessly to get it passed. He followed the golden rule- those with the most gold make the rules.
Every two years since great efforts have been made but little of legal significance has passed...
I don't disagree that many people have bad experiences. But the reality is this is one area that you can do well with, IF YOU HIrE the right lawyer. The laws the,selves are pretty good. Most E&P companies are really good people, compared to many other consumer businesses. And some are bad. But either way, the law is there to help you if you need it. Which is NO LONGER TRUE in many areas of law. Special interests have changed the laws and destroyed the power of a judge and jury to make it right. Not so in Ed or oil and gas.Mas89 said:
TSCRA magazine THE CATTLEMAN, SUMS IT UP BEST ON PAGE 34 of July 2018 edition
'' THIEVES who masquerade as bureaucrats and do-gooders are conspiring to strip you of your water rights, your property rights and your land, all in the name of progress''
I think those of us who have had negative experiences with production activities on our land will forever have a different opinion on this than those who work in the industry. But great to respectfully disagree.
sunchaser said:
....are they wanting to "lease" your mineral interests or outright purchase them?