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Retaining Mineral Rights

1,782 Views | 5 Replies | Last: 4 yr ago by GrimesCoAg95
StrikeWater00
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AG
I'm in the process of listing some family acreage--as the title suggests, we own the mineral rights. The property is in Hopkins Co. There's no O&G to speak of to my knowledge, but nearby areas have historically been mined for coal (lignite). I know that several decades back there were some leases on this property, but never any mines.

My gut says to retain all of the minerals regardless of the potential, but agent suggests that a combination of the size of the tract and retaining the minerals may slow a sale. Also, not really in a position to sit on this for years waiting on a buyer.

Any advice from the real estate board? Is it worth pursuing a minerals report or similar? Keep 50%?
AggieGunslinger
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AG
If I am not mistaken, the mining around there was strip mining. I am not sure you will get anyone to buy a property that the seller is reserving the coal rights and one day may come and rip the top 200' of the earth out, but maybe that is just me. Reserving the rights to subsurface oil and gas is relatively easy and is only a problem if a buyer brings it up.
Kenneth_2003
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AG
I believe near surface coal is not considered a part of the mineral estate and is included in the surface estate.
nonameag99
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Bingo
Martin Cash
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AG
If I were king, I would ban the retention of any mineral or royalty rights.
ItsA&InotA&M
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Martin Cash said:

If I were king, I would ban the retention of any mineral or royalty rights.


I agree.
In La., minerals revert to current land owner 10 years after sale or last production.
GrimesCoAg95
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AG
There are a lot of more educated people on this board than me, and I think AggieGunslinger got to the root of the question. What are you wanting to keep? Is it just O&G rights? If you retain those, you can include a Waiver of Surface Rights in the transaction. This lets you keep the O&G while the buyer knows they won't be using this acreage to drill or produce.
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