We are in the process of setting up a family mineral rights trust that includes ten family members that own a percentage. Now we find out that two owners are opting out of participating in the trust to manage their own interests, and do not plan to contribute to paying the legal fees associated with the trust. Does anyone have any suggestions on how we proceed on the trust, and how do we word the trust to show the percentage ownership of the two opting out without actually including them in the trust? What are the potential problems later on if the Trust seeks a lease but two mineral rights owners are not part of the trust? Any insight or associated experience would be helpful. Thanks
If you all have undivided interests, I think the trust should ignore those who do not wish to participate in the trust, as far as the trust is concerned, they don't exist. If you each have title already, the trust should be able to describe the totality of minerals controlled by the trust as a percentage of an undivided mineral interest under X number of acres, located x-where. Inside the trust itself you can determine who own what if not all have the same interest. I really think your lawyer should have explained this to you, I hope you haven't wasted alot of money.
If the eight of you own the majority, you can lease.
It all depends which state the minerals are in and the state laws that apply. An example is the laws of Louisiana and Texas. In Texas if all ten own an undivided interest in the minerals, then each one can lease his individually. They can sell their interest also. You can’t force them to do anything if they don’t want to about this. You really have not given us enough information for a good answer.