Mineral Rights

H

HoustonHorn

250+ Posts
Does anyone know much about mineral rights? I'm trying to buy some land and the owner is coming back after we've agreed on everything and wants to retain the mineral rights.

I don't have any experience with this sort of thing and would appreciate any advice you can offer. I'm assuming that they wouldn't have the right to do anything to my surface property, and I'm assuming that if there was any damage that I'd be reimbursed?

Should I request some sort of consideration in the contract for this?
 
Its about an acre inside the Beltway.

I did agree to buy everything and I've already told the real estate agent that I'm upset about how they've gone about this. How much consideration should be given, or how much should I reduce the offer: $5,000? I don't have any idea.
 
There are cases on that, but the general rule is that, yes, they could basically build a big old rig directly in your living room. And remember: mineral rights include lots of stuff besides oil.
 
Well, the mineral rights are currently theirs. The mineral rights were never discussed during the negotiations, only after I signed the contract, but apparently before they signed the contract.

Isn't it pretty common that people don't own the mineral rights to the property? Are all of these people at risk of having someone put up a drilling rig on their property?
 
Thanks for all the info guys. That presentation was pretty interesting.

I think I'm going to draw a line in the sand and basically say no sale without the property rights. It's not worth the risk of someone else being able to make decisions that affect my family without me having any say in the matter.

Thanks!
 
Depending on the land being in the City of Houston, I believe the COH prohibits drilling inside the city limits.

You need a surface waiver.
 
To drill in the city you do need to get a special permit from the city, but we have drilled two well in the city, right outside the beltway. So while rare, there is still drilling in this vicinity.
 
The problem is I don't have enough time to do the research to figure out everything I need to know to make an informed decision. This could have been brought up 2 weeks ago and there wouldn't be any problems. I'd have time to figure it out and make a good decision. Unfortunately that's not the case now, so I'm just going retract my offer.

The seller is having some sort of mineral rights contract written up. If anyone here is/or knows of an attorney that can look it over, I might be interested in that, but at this point I think its probably best to just walk away.

Thanks for the help everyone!
 
Phil:

Would that give me control over whether or not there is any drilling/mining on the property. If I can do that, that is my main concern. My main concern isn't the mineral rights themselves. Its the loss of control over what happens on my property. If I was an investor and going to build three patio homes on the lot and pass on this risk to the people buying the homes, I'd say no problem. But I'm planning on building a home for my family to live for the next 30+ years. I can't take the risk that someone else can control what happens on that property.

Thanks!
 
The term "Property", as defined in Section 2 of the Contract, includes only the surface estate of the land described in Section 2, and does not include the oil, gas, or other minerals that are located on and under, or that may be produced from, that property.

The deed to be delivered by Seller to Buyer at the Closing as described in Section 9(B)(1) of the Contract shall provide a reservation by Seller of all oil, gas, and other minerals that are located on and under, and that may be produced from, the Property. The mineral reservation in the deed shall also include a waiver by Seller of the right to use the surface of the Property for the exploration, drilling or production of minerals.

That's the entire addendum to the contract. Does this supersede the fact that the mineral estate is the dominate estate? Any other thoughts on this?
 
I would go get a lawyer before you get screwed, especially since it looks like you've already signed a contract.
 
I'm having an attorney look over the thing now. In its current form, it is unacceptable.

Does anyone have any idea the potential value of the mineral rights for an acre? I mean, how much do these things typically make in the event something is actually found?
 
Just back out.

You've signed, he hasn't. He wants to change the terms of the contract.

If you dont want to part with the mineral rights that you've previously signed for, and he wants to change the contract, there shouldnt be any legal recourse, right?
 
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