Since 2009, Oklahoma county has owned two adjacent lots (about 1/4 acre) on a residential street. There is a pump jack and associated equipment on it. A sign on the fence says White Operating Co. The lots are going for $1475.00 each. If I purchased the lots would there be any income available from the equipment owner, White Co.? What would the risks be owning them?
Thanks in advance for any response.
With real property there is a concept of a bundle of sticks. The first owner owns all of the sticks. The owner can sell the surface and retain the minerals below. In many, but not all cases, when a subdivision is created the minerals are reserved to a predecessor. Therefore, it is impossible to tell if purchasing the lots would entitle you to minerals. A mineral title opinion would need to happen.
Richard is correct on the bundle of sticks. Highly unlikely that those surface acres are still attached to the minerals. From a risk point of view, the surface owner could have an environmental accident such as a leak or explosion. There was hopefully a surface use agreement (lease) filed by the current or previous surface owner. You might be able to find it in the county courthouse. The surface lease is different than the mineral lease and provides the terms for the items that concern a surface owner. That bonus was paid a long time ago and probably would not come to you. Any royalties from the well would go to the mineral owners.
Thank you Richard for your input.
M_Barnes, I appreciate your feedback on my issue. : )
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