Help researching mineral ownership

i have just been informed that even though my deed says that i own the mineral rights to my property that in fact i don’t.the original owner gave the rights to his family before he sold the property over 60 years ago.what do i have to do to find out if this was legal and if i have any rights to the minerals.i was never informed of any mineral taxes that needed to be paid and to my knowledge there have been no mineral taxes paid by any of the original landowners family

I know that in some states there are laws relating to abandoned mineral rights. That would be where the mineral rights have been severed, and aren't recorded, and no taxes have been paid, etc. In such an instance, they can revert back to the surface owner.

I also wonder if you wouldn't have protection from title insurance--presuming you have a warranty deed, rather than a quitclaim deed? You wouldn't get the rights back, but maybe you could get the value of the rights up to the policy limits.

In any event, it would probably be worthwhile to consult with a property lawyer.

Rick:

You can research the records at the County Clerk's office in the county where the minerals are located to see who is on record. The above post is correct in regards to abandoned minerals. I don't understand you're statement about "taxes" on minerals as the taxes would be paid by the surface owner and not the mineral owner. You didn't say what State these minerals are located in but it might be worth checking into via an attorney. I would first read up on the oil and gas mineral laws in the State where these are located.

In some places at least, once the minerals are severed, they are taxed separately.

charles s mallory said:

Rick:

You can research the records at the County Clerk's office in the county where the minerals are located to see who is on record. The above post is correct in regards to abandoned minerals. I don't understand you're statement about "taxes" on minerals as the taxes would be paid by the surface owner and not the mineral owner. You didn't say what State these minerals are located in but it might be worth checking into via an attorney. I would first read up on the oil and gas mineral laws in the State where these are located.

West Virginia is one of these states where separated minerals have a separate tax bill from the county where they are located.

Lisa said:

In some places at least, once the minerals are severed, they are taxed separately.

charles s mallory said:

Rick:

You can research the records at the County Clerk's office in the county where the minerals are located to see who is on record. The above post is correct in regards to abandoned minerals. I don't understand you're statement about "taxes" on minerals as the taxes would be paid by the surface owner and not the mineral owner. You didn't say what State these minerals are located in but it might be worth checking into via an attorney. I would first read up on the oil and gas mineral laws in the State where these are located.

I was not aware that some States levy taxes on a county level in regards to minerals. Under what conditions is this tax levied. If the minerals are leased, then is it the resposibility of owner on record of the minerals to pay a tax on these minerals. If the minerals are owned by numerous individuals, does each person get taxed based on their portion of the minerals.

Nancy Mosley said:

West Virginia is one of these states where separated minerals have a separate tax bill from the county where they are located.

Lisa said:
In some places at least, once the minerals are severed, they are taxed separately.

charles s mallory said:

Rick:

You can research the records at the County Clerk's office in the county where the minerals are located to see who is on record. The above post is correct in regards to abandoned minerals. I don't understand you're statement about "taxes" on minerals as the taxes would be paid by the surface owner and not the mineral owner. You didn't say what State these minerals are located in but it might be worth checking into via an attorney. I would first read up on the oil and gas mineral laws in the State where these are located.

Charles Mallory asked: "I was not aware that some States levy taxes on a county level in regards to minerals. Under what conditions is this tax levied. If the minerals are leased, then is it the resposibility of owner on record of the minerals to pay a tax on these minerals. If the minerals are owned by numerous individuals, does each person get taxed based on their portion of the minerals. "

In West Virginia, the owner of record of minerals (or oil or gas or a combination of them) is sent a property tax bill just the same as a surface owner, or fee owner (surface and minerals). The producing properties have the production amount reported by the companies to the state tax department who passes the information on to the counties. This is by well (API number) which the counties are able to connect with the mineral (as inclusive term) location and thus to the mineral owner(s). The tax rate for these properties is determined by the $ amount paid to the royalty owners (proportional ownership of course).

For non-producing properties, there is a formula based on acreage, type of mineral (oil and gas at one rate, other minerals at another so the owner of OGM has the combined rate) and the % owned. Someone owning 1/4 OGM on 100 acres not producing (whether leased or not) has a certain assessment, which is multiplied by the tax rate for the county, and the tax is thus determined. There is a minimum assessment of $100 so a tax on a non-producing small acreage with OGM ownership might be around $2.00 per year.

If people don't pay their property taxes for a certain amount of time (after notification by mail and in the local paper) their property is sold at a "sheriff's tax sale".

All this is in addition to any state income tax owed on the $ income from any production on this property.

Hope that is clear. I have had to figure it out (with much help from officials) after my own inheritance.

Nancy:

Thanks for the information about the taxation of minerals. I wonder how many States levies a tax on minerals, both productive and non-productive? If you have production on your mineral acreage, then you are being taxed from several directions. This is very interesting and I am learning something new as a result. Thanks again for your input.

You're welcome!

The bad thing about this taxation is paying the tax! The good thing is, it is easier to find who owns the minerals.

Nancy:

So if you are a surface owner and mineral owner, you get double taxed on your acreage? I suppose CPA's in West Virginia do a great business.

I think a non producing fee property (surface and minerals) would not be taxed much more than just surface.

Again, it would probably require the assistence of a professional in some situations.

Nancy Mosley said:

I think a non producing fee property (surface and minerals) would not be taxed much more than just surface.



Nancy Mosley said:

You're welcome!

The bad thing about this taxation is paying the tax! The good thing is, it is easier to find who owns the minerals.



Wesley H. Luke said: Hi Nancy, Colorado is one state that taxes mineral rights. We have a potful of them there and the taxes are about $250 year. I would say the property owners also pay a tax. We've had no inquiries on them in over 20 years. It does help in keeping track of the MR's you own and if you don't pay them you lose them. It's a coin toss as to whether we should keep paying taxes, sell them, or quit paying taxes and lose them. Sure as we sell them or lose them there will be a huge play found there and we could literally lose millions for a tax of $250, so we are holding onto them.

Have a great day!

Wes



Nancy Mosley said:

You're welcome!

The bad thing about this taxation is paying the tax! The good thing is, it is easier to find who owns the minerals.

thank you for the information

Nancy Mosley said:

Charles Mallory asked: "I was not aware that some States levy taxes on a county level in regards to minerals. Under what conditions is this tax levied. If the minerals are leased, then is it the resposibility of owner on record of the minerals to pay a tax on these minerals. If the minerals are owned by numerous individuals, does each person get taxed based on their portion of the minerals. "

In West Virginia, the owner of record of minerals (or oil or gas or a combination of them) is sent a property tax bill just the same as a surface owner, or fee owner (surface and minerals). The producing properties have the production amount reported by the companies to the state tax department who passes the information on to the counties. This is by well (API number) which the counties are able to connect with the mineral (as inclusive term) location and thus to the mineral owner(s). The tax rate for these properties is determined by the $ amount paid to the royalty owners (proportional ownership of course).

For non-producing properties, there is a formula based on acreage, type of mineral (oil and gas at one rate, other minerals at another so the owner of OGM has the combined rate) and the % owned. Someone owning 1/4 OGM on 100 acres not producing (whether leased or not) has a certain assessment, which is multiplied by the tax rate for the county, and the tax is thus determined. There is a minimum assessment of $100 so a tax on a non-producing small acreage with OGM ownership might be around $2.00 per year.

If people don't pay their property taxes for a certain amount of time (after notification by mail and in the local paper) their property is sold at a "sheriff's tax sale".

All this is in addition to any state income tax owed on the $ income from any production on this property.

Hope that is clear. I have had to figure it out (with much help from officials) after my own inheritance.

Curious about this statement as in my situation for tax year 2012 one of the mineral right owners has seperated himself on the tax bill and I just spoke with the Treasurers office of Harrison County WV and was told they only had my address as one of mineral rights owners and I was sent the entire tax bill for all the mineral right owners mostly my relatives because they were being paid by the person who just seperated himself tax wise and if I don't pay the entire tax bill my portion will be deliquent. I asked again why I was being held responsible for the entire bill which should be paid by 6 other people and myself they said I wasn't but if it didn't get paid again my portion deliquent. So how does this statement possibly contradict what I"m being told?

In West Virginia, the owner of record of minerals (or oil or gas or a combination of them) is sent a property tax bill just the same as a surface owner, or fee owner (surface and minerals). The producing properties have the production amount reported by the companies to the state tax department who passes the information on to the counties. This is by well (API number) which the counties are able to connect with the mineral (as inclusive term) location and thus to the mineral owner(s). The tax rate for these properties is determined by the $ amount paid to the royalty owners (proportional ownership of course).