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Question on minerals exempted from surface sale

2,116 Views | 12 Replies | Last: 1 yr ago by Throwout
tlh3842
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I'm now part of a partnership my dad and his siblings created when my grandparents (their parents) were getting older so the land could be better protected legally. Having recently joined the group, its been an opportunity for everyone to discuss the past actions and any questions left out there.

In 2000, my grandmother (their mom) bought one of her brothers entire piece of the undivided property. The warranty deed has the below language included. Both her brother, and his wife signed the deed. Well less than a year later (was still several years before he passed), his wife uses power of attorney and sells his mineral interest to one of those smaller O&G companies (the kind we get routine calls from) and no one ever followed up on it or attempted to do anything about it.

So my question is, how strong is the below language? Should an O&G company have found this language and known they were unable to acquire this mineral interest based on this? Bigger question, do we have any case to fight and regain that mineral interest? Property is in Brazos County and wells are fairly old (been leased since later 80s and early 90s) but it's still something every couple months or so. Also, there's several thousand on the Comptrollers Unclaimed Property website, which is another reason to be asking these questions. Wondering if this uncertainty is maybe one of the reasons that money is with the state as opposed to going to whoever the company is.

I realize this is very much a legal question, and would greatly appreciate attorney recommendations as well, but lots of smart people here and plenty of experiences so thought someone may have initial thoughts.



"SAVE & EXCEPT, and there is hereby reserved for Grantor and Grantor's successors and assigns for the limited term described, all of the oil, gas and other minerals in and under and that may be produced from the above described property for and during the remainder of the life of Grantor, as a life estate as to said minerals and upon the death of Grantor, this reservation shall cease and the minerals reserved hereby shall pass to and vest in the Grantees, their heirs, successors and assigns."
$3 Sack of Groceries
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Would seem to me that the conveyance of his interests to the O&G company supersedes the save and except portion of the deed.

There's nothing in that language that would prevent someone from buying the mineral rights should the owner decide to sell them. So the notion that the O&G company found a loophole, etc. doesn't hold water.

I'm a surveyor, not a lawyer.
CS78
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Would seem that the attorney that wrote that goofed by not stating that the minerals couldn't be sold before his death.

Im going to text you the contact info for my real estate attorney.
sunchaser
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Did she sell the mineral interest with producing wells on the property or non developed minerals? I would guess there isn't a loophole in the sale as the grandfather was still alive.
country
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Based upon that reservation, the wife sold only a remainderman interest in the mineral estate. He had a life estate for his life. He did not own the fee simple rights in perpetuity. Upon his death their rights went away and they revert to your grandmother's estate.

***Not a lawyer.
humperdink
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Have a lawyer review all the conveyances, not just a paragraph.

Do not rely on any interpretation or advice from this thread.
country
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In addition to the above advice, get it taken care of sooner rather than later.
O.G.
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Landman here and I would want to see all of the previous documents.

It is not unheard of for those (usually a widow) to sell, or try to sell, something when they themselves only have a life estate, not actual ownership.

Again though, I would want to see the previous docuents. Tough to make a complete judgement call based on the one paragraph above.


Also, hire a lawyer.
Martin Cash
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country said:

Based upon that reservation, the wife sold only a remainderman interest in the mineral estate. He had a life estate for his life. He did not own the fee simple rights in perpetuity. Upon his death their rights went away and they revert to your grandmother's estate.

***Not a lawyer.
You're not a lawyer, but your answer is probably correct, based on what we know.
tlh3842
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Appreciate all the feedback, and certainly plan to go the lawyer route. After downloading the records, was just looking for initial feedback while figuring out where to go next.

Got the rec from CS, any other attorney recommendations are also appreciated!
regularjoe
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Give Ryan Becker a call. He's an oil and gas attorney and he was also a landman. He's in B/CS. He'll take good care of you.
tlh3842
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Appreciate another name
Throwout
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Get an attorney to review asap. Specifically one that specializes in mineral rights. I ran into this on some land my family owned in Pennsylvania over 200 years ago. The land had sold multiple times since my family owned it, but my family maintained the mineral rights in perpetuity. A company came in wanting to mine the coal beneath the surface and threw a butt-load of documents at our family that was extremely cumbersome to go through. Without an attorney that knew what all of it meant, our family would have lost a lot of money. Having an attorney involved that knew what everything meant was a very small cost in terms of what our family has made on the back end.
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