I am part of a limited partnership. The Partnership has recently been contacted to lease it's mineral rights. In fact, this company is leasing mineral rights in much of Harlan and Franklin county in Nebraska.
Once my elderly mother dies, there is a good chance that some of the limited partners (sibilings) will want to sell the land as several are city dwellers. There are also water issues with Kansas and the Natural Resource District is requlating the amount of water usage.
I am concerned that a mineral rights lease may be an incumbrance to selling the land and that if drilling is done it may cause problems with the water issues.
Since I am a city sibling, do I have any reason to be concerned?
Ms. Parish, you seem to know already that some lenders dislike financing property that is subject to an oil and gas lease. I can’t speak to your water issues, but I think they would become the drillers problem if the driller wanted to use your water.
I also have a question about the minerals under my property should I decide NOT to lease the mineral rights. I have been researching the “Fracking” process and want to know what happens if the initial drill site in on an adjacent property. Does the drilling company have the right to go into the shale on my property via the neighbors drill site? My brother says they can. I would hope this is not true.
r w kennedy said:
Ms. Parish, you seem to know already that some lenders dislike financing property that is subject to an oil and gas lease. I can't speak to your water issues, but I think they would become the drillers problem if the driller wanted to use your water.