Received a Seismic Permit Request as an Heir of my late Grandfather about mineral interest owned by me… which seems to me like it is a sneaky document for me to sign, as a hopeful Heir….
The document reads to me like I would be giving the Landman or the Oil & Gas Company a lease on this without me even thinking twice. WRONG !!
I have looked over your forums, but would like to ask a few questions, if you don’t mind.
My Grandfather passed back in 1980 and my father passed in 1999, which would leave me as his Heir being my father was an only child as well as I.
If I am sent this type of document, does this in fact mean that I have inherited his mineral rights? What do I need to do to secure the mineral rights to my name (or do i need to)?
Could there already be mineral rights owed to me on this, if they have already started doing something with this property?
They listed the description and parcel number, but no physical address and I am having a hard time finding the property they are speaking of.
Since I just received the letter yesterday, I have not had a chance to look into the documents my father left behind to see if there are any property records for my Grandfather included.
I do not live in the state that this property is in, so getting to the County’s Chancery Clerk to check deed records will not be an easy step for me.
Very confused on how to proceed with this…
Thanks for your time,
Crystal, a seismic permit will not transfer title to you. Going by what you say, you may own all of it or alot of title work may find that you don't own all of it, can't tell from here.
Usually seismic happens before drilling but it's possible someone drilled with less capable seismic from years ago and someone wants to do up to date seismic.
If there is anything you don't like about the permit, I wouldn't sign it.
A seismic company makes money off of doing a seismic shoot. There are also many pitfalls, there may be language giving the sole right to do the shoot, and tie up that right of yours. Someone on the seismic crew could step in a rabbit hole and break an ankle or be bit by a dog and sue you. There may be a lease option in the seismic agreement that ties up your rights for no money.
This seismic company wants to make money off your acres, they may collect money for doing a shoot and sub out the actual shoot to someone else.
I think you could post the seismic permit as an attachment. It's not like they aren't going to want to shoot your acres if they found out, they can't make any money off them otherwise.
I think you meant that since you received the document, does that mean you are the record owner of the mineral rights, right? You knew that the document wasn't a conveyance, I think.
This question sounds similar to one that Karen Lynch asked. Did your father have a will?
Crystal, Perhaps that is common elsewhere but I have never heard of permission for conducting seismic tests being secured from a mineral owner. In my experience it is only the surface owner who has to sign off on it.
So either you own the land without knowing it (unlikely because county taxes would not have been paid), or the document they've sent you is something other than a request to conduct seismic testing. So your instincts are correct in not signing something without knowing the facts.
The mere fact you've been sent this request does not prove you own anything (surface or minerals). Though it would warrant your time to investigate things. If I were you I'd start by researching the documents your father, and/or grandfather, left behind. At the least you'll want to determine the State, county, and full legal descriptions where minerals might be owned. Then you'd be in a position to try to determine what is actually owned. Good Luck.
In Texas, any undivided mineral owner can grant permission, so it wouldn't follow that she may own the surface. She most likely doesn't. It varies from state to state, but she's in Texas.
It sounds like she received a request to do a Seismic shoot, and they want her to sign the permit as a mineral owner. She also tells us that what it says.
A company who thinks they may want to lease your minerals probably hired this company to do seismic and if it looks good they will probably lease your minerals and drill you a well. Nothing sinister about it. If your that freaked out and worried that some weird thing like you'll be sued because of rabbit holes don't sign it, throw it in the trash. They will find someone else around you who'll give them permission.
I don't really think that it is an issue. Just some kind of weird scare tactic. They wouldn't go after her anyway. She's only a mineral owner. If the surface owner raised tigers and one of the seismic crew was mauled to death, his family might file a wrongful death lawsuit against the surface owner, not any of the mineral owners.
One might consider the meaning of privity of contract. Employees with OTJ injuries often sue their employers who happens to be in privity of contract to whom through a seismic agreement???? Or the meaning of indispensable party. You don't have to be sued directly to incur some serious expenses. I believe Buddy Cotten has a blog on the geophysical option and it's misuse that I would consider it a good read before one signs a seismic agreement. I think at a minimum you need a hold harmless and agree to forever defend clause, just to be on the safe side. Or you can go with the peanut gallery who scoffs that anything could ever happen to you because whatever happens, they will be fine, and I think you will find that as comforting as I would.
Dear Ms. Gentry,
You cannot look at the title of the document and be sure that is what the document really is. If it appears that a lease is forthcoming, perhaps this is a seismic permit and option to acquire an oil and gas lease. If the lease is attached, so much the better for clarity's sake, BUT a specific lease form described as the "Pound Printing Company form 4/76 with 640 acres pooling (paid up), would be absolutely adequate to pin down the form to be used.
As an informational matter, my form provides that the seismic MUST be shot within a period of time, or there is a liquidated damage in the amount of $250.00 per acre. That stifles the ones who are not transparent on their plans.
So, you might want to read it carefully.
Many companies are using seismic permits and options as a low cost alternative to buying a lease option or a lease.
The devil is in the details, and the details are spelled out in the agreement that they sent to you.
I am not an authority on Mississippi law, as your post implies the situs of the property (profile says that you live in Texas and own minerals in Texas and Mississippi. You referred to Chancery Court, a Mississippi term. You also said that the property was out of state).
Perhaps someone here can edify us on Mississippi law as it applies to seismic exploration.
Crystal,
I hope you aren't too confused. It sounds like you received a Seismic Permit, or it could be a Seismic Permit with lease option. No one here has read it, but that's what it sounds like.
In general, it means that the seismic permit agent saw something of record that indicated to him that you were a surface or mineral owner. They usually don't pull names out of a hat.
If I was you, I would call them back and see what they say. Ask them point blank why they sent it to you. You can play dumb if you want.
Lastly, be very very careful about some of the advice you receive here. At times, or often the forum member is incapable of offering any good advice, and only uses scare tactics. They are not always trying to trick you or defraud you. Having said that, some of the advice is good. Be careful and know what it is that you are signing.
Thanks for all the replies... I will look through my fathers paperwork this weekend to see if I can find anything. Not sure if my grandfather left a Will, but do know my father did not have one.
This is the letter they sent.... there is a permit number on the document as well as a parcel number (wasn't sure if it was a good idea to include)
-------------- ("Grantee"), requests your permission to process and analyze data obtained by a seismic survey regarding mineral interests owned by you in Scott/Newton County, MS, being described below, and including not only all mineral interests owned by you in the Sections listed below, but also any and all minerals owned within the Steel 3D seismic survey outline, whether or not correctly described or included herein.
In consideration of the mutual benefits to the parties arising from the provisions of this agreement and other valuable considerations, the receipt and sufficiency of which is hereby acknowledged, Grantor hereby grants and conveys to Grantee the right to process and analyze seismic, geophysical and geological data obtained relating to the mineral interest(s) owned by you in and under the property described herein.
Description:
SECTION3: 52 acres, more or less, being part of the SW4 of the SE4 & part of the SE4 of the SW4.
Parcel:
Grantee agrees to indemnify and hold grantor harmless from and against all actions, suits, claims and demands whatsoever that may arise from our work by virtue of your permission granted herein. In the event of cancellation of the seismic work described above, this contract shall be null and void. Operations will be conducted in accordance with good standard practice and in a prudent and safe workmanlike manner.
Please sign, date, and return this permit to me at your earliest convenience.
It looks like a Seismic Permit with no option to lease.
It's good that they added the indemnification clause, or the last paragraph. That way, the issue about being warned about any liability becomes moot.
Go to a posting/thread started by Karen Lynch called OLD MINERAL RIGHTS, or something like that. She had some questions similar to yours regarding how to establish color of title or ownership after someone dies.
You could file heirship affidavits in every county where you think you may have inherited minerals.
It will better flag your interests for the title searcher, but it appears that the Mississippi seismic permit agent found you somehow.
but it appears that the Mississippi seismic permit agent found you somehow... This could not have been an easy search, which is why i was wondering if they sent me the letter, is it possible i do own some of the rights? I will look through Karen's tread...thanks.
Dave Quincy said:
It looks like a Seismic Permit with no option to lease.
It's good that they added the indemnification clause, or the last paragraph. That way, the issue about being warned about any liability becomes moot.
Go to a posting/thread started by Karen Lynch called OLD MINERAL RIGHTS, or something like that. She had some questions similar to yours regarding how to establish color of title or ownership after someone dies.
You could file heirship affidavits in every county where you think you may have inherited minerals.
It will better flag your interests for the title searcher, but it appears that the Mississippi seismic permit agent found you somehow.
Yes it is. However, there appear to be some missing links.
Force their hand in an effort to clear things up. Typically, they don't send those out of the blue.
Ask them to document your interest, and what Ms. law is regarding who must sign,
Ok.. i wil try that. Thanks
Dave Quincy said:
Yes it is. However, there appear to be some missing links.
Force their hand in an effort to clear things up. Typically, they don't send those out of the blue.
Ask them to document your interest, and what Ms. law is regarding who must sign,
Crystal-
This article may be of help, although it is written for Texas mineral owners.
http://www.mineralrightsforum.com/profiles/blogs/i-may-own-minerals-so-now-what
Yes, some people don't give good advice, I'm glad you took my advice to post the permit language and that it contains the hold harmless language that I told you that you need. Too bad some people are here just to try to take cheap shots. What some people call a scare tactic may be that someone wants you to be safe. Others may not care if you are safe. The hold harmless clause is in the contract, if you didn't need it, why would it be there?
Dave Quincy said:
Crystal,
I hope you aren't too confused. It sounds like you received a Seismic Permit, or it could be a Seismic Permit with lease option. No one here has read it, but that's what it sounds like.
In general, it means that the seismic permit agent saw something of record that indicated to him that you were a surface or mineral owner. They usually don't pull names out of a hat.
If I was you, I would call them back and see what they say. Ask them point blank why they sent it to you. You can play dumb if you want.
Lastly, be very very careful about some of the advice you receive here. At times, or often the forum member is incapable of offering any good advice, and only uses scare tactics. They are not always trying to trick you or defraud you. Having said that, some of the advice is good. Be careful and know what it is that you are signing.
Joe, it doesn't have to be about you unless you make it about you and you have no duty to prove me right.
As for this statement and your other statements in this thread, you might want to look in a mirror.
The hold harmless clause is there. Why would they include a hold harmless clause if it were not necessary? Probably no comment about this as so many other things. What a joke!
Mineral Joe said:
Someone has a burr under their saddle, leaving childish petty comments, rabbit hole, what a joke.
Here you go Dave,
" I think at a minimum you need a hold harmless and agree to forever defend clause, just to be on the safe side. Or you can go with the peanut gallery who scoffs that anything could ever happen to you because whatever happens, they will be fine, and I think you will find that as comforting as I would."
I realize you have trouble reading, and also trouble remembering what you said. LOL
You should see someone about that poor memory, sometimes it's chemical.