I am one of three heirs to 70 acres with 100% mineral rights in Atascosa County, Texas. The will has been probated, but property is still in estate, so is undivided between the heirs. My brother is executor. Last year, we went down to visit the property and discovered a natural gas pipeline had been installed on our property without our knowledge or consent. My (estranged) sister somehow negotiated a deal with a (big) company. Question #1… was that legal, on either party’s side?! I’ve had some interaction with the company, but both my brother and I have refused payment, and refused to sign the ROW agreement for pipeline, on the grounds that we won’t sign a ROW lease to something we were never informed of or agreed to.
My brother and I have been in negotiations with the same company since November, for the lease of the mineral rights. The company is offering to increase the dollar amount per acre, as an “apology”, so to speak. We don’t yet know how much they are willing to increase. We’ve negotiated $1,250 per acre, with 25% royalties. Question #2 is do we agree to negotiate a better sign-on bonus, or pursue the faux pas with the ugly pipeline?
Irrespective of the lease bonus, if the Oil Company is truly in trespass because they did not negotiate with the surface owner (the Estate), then they are in serious trouble.
At this point, you have a business decision to make on maximizing their trespass problems and maximizing your mineral asset.
What any oil company will want to do is dispose of this real problem and make it go away. A good negotiator - landman - attorney, etc. - will lead you through the process to maximize your goals. I suppose that the bottom line is to get someone in your corner before you become worn out.
Trespass… Why couldn’t I think of that word?! I just knew I felt violated; that someone could be so presumptive of someone else’s property rights. The company is already trying to make the problem disappear, in my opinion, by offering to increase the mineral sign-on bonus. In other words, they’ll “apologize” with a few extra dollars, but we’ll have to sign the pipeline/ROW agreement. That we never agreed to. As for becoming worn out… too late. I’m already worn out. It’s become my other full-time job. Too poor for an attorney; too offended to give up. I thank you, Buddy, for your most welcome response! Extremely helpful!
Buddy Cotten said:
Dear Ms. Smith,
Irrespective of the lease bonus, if the Oil Company is truly in trespass because they did not negotiate with the surface owner (the Estate), then they are in serious trouble.
At this point, you have a business decision to make on maximizing their trespass problems and maximizing your mineral asset.
What any oil company will want to do is dispose of this real problem and make it go away. A good negotiator - landman - attorney, etc. - will lead you through the process to maximize your goals. I suppose that the bottom line is to get someone in your corner before you become worn out.