I have inherited land in Grayson County, Texas that has been in our family since the 1940s. I would like to build a retirement home on this acreage but I have a concern about drilling since we do not own the mineral rights. What is the best way to determine who owns them and if that answer is a landman, how do I get a comfort level that the mineral rights are indeed the ones tied to my surface land? Does a title company do this and do they guarantee the ownership position? Lastly, do you have to own 100% of the minerals in order to control any leasing activity? This land has never been drilled on but I just don't want to build a new house and find later that a well is drilled nearby.
Dear John,
Your concerns are founded. The fact is that someone else owns the minerals! The mineral estate is the dominant estate. That means that the mineral owner has the implied right to use the surface estate, i.e., the surface estate exists for the benefit of the mineral owner and grants various rights to the mineral owner.
If you decide to build on this land, you may be living out your retirement in "high anxiety," because the mineral owner, most likely, will have their best interests at heart. To add to your consternation, an oil company can select the locations of wells and pipelines to be placed on the property without input from the surface owner.
BTW, title companies don't even enter into this picture.
Good luck,
Pat
Sell that property and buy one where you get all or part of the minerals. This way you will have some measure of control.
John,
How close is the nearest producing well to your surface acreage? If you will give the legal description(Abstract, Section, Block) I can pull up the GIS map of the area. And there may never be a well drilled on or nearby your acreage in your lifetime.....just a thought. The ranch I own interest in in Wilbarger County Texas has been in the family for 70 years and has 'never' been drilled on. We have been leased several times.
Clint Liles
John
To try to answer some of your original questions: Determining who owns the mineral interest under your property will require research in the Grayson County deed records. A local title company could, for a fee, prepare a run sheet listing all the documents that have been recorded related to the legal description of your tract which would be useful in doing this research. If you aren't near Sherman or don't want to tackle any of that research yourself then hiring a landman may be logical but you might see what you can find on your own. Google the Grayson County Clerk's office and you can find how to access their deed records online. The indexes will probably only go back to the 1960's but might still be useful.
You said your family has owned this property since the 1940's, have you checked the deed where your family acquired it to see if that's where the mineral interest was retained? I doubt that's the case but it was, the task then would be confirming whether that party still owns the minerals or who they've been transferred to.
In the simpliest situation might involve tracking down just a few people. On the other hand you may find the minerals were retained many years before your family acquired the land, possibly as several separate mineral interests, and that those interests have now passed by sale or inheritence to a number of other owners.
If you, or a landman you hire, can determine and locate the current owners of the mineral interest you could then try to obtain a Waiver of Surface Use from them (or possibly buying their mineral interest if it turns out this isn't an activity area for exploration.) In agreeing to sign a waiver the mineral owner would be giving up their right to drill on your property but would still have the ability to lease their minerals and for horizontal wells to be drilled from other locations, or participate in wells by pooling of their mineral interest. You didn.t say how many acres you own, but on larger tracts another alternative might be designating a drill site which the mineral owner would agree was the only place a well could be drilled. There is no way to know how difficult the job might be until some research is done.
In order to gain some control you wouldn't necessarily have to get waivers covering 100% of the mineral inrterest. It would certainly be preferable but if you could only get 50% surface control it would definitely give you more leverage with a potential mineral lessee of your tract. They don't have to, but from my experience oil companies typically try to work with surface owners and keep them happy as long as they can still accomplish their objectives. There are also some Railroad Commission rules about how close a drill site can be to an existing residence that you should learn about.
Thank you Dusty for a very thorough answer. Would you be able to recommend a reputable land man for the Grayson County area? Thanks again, I sincerely appreciate your comments.
Thank you Clint for your reply. There is no producing well nearby, but there is an injection well. I just don't want to take the chance that something like this could be placed on the 50 acre tract. I took a look at the abstract, it lists patent number 71, volume 4, abstract number 1193 but no mention of section or block. How would I find that information? Thanks again.
John,
After checking the GIS Map I have to agree with Charles Cunningham. Sell that property and find some other property to buy. There is definitely a Saltwater Injection Well(API 181-31574) in A-1193 and producing wells/plugged wells in the surrounding area.
http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m...
GIS Map of Grayson Co. A-1193 and surrounding area:
CLICK ON MAP TO ENLARGE MAP
Clint Liles
John
I'm not in that area and don't have a landman to suggest.
Why don't you call Chapin Title Company in Sherman (903) 868-1415 and tell them what you are trying to determine. If they can't help you they might be able to suggest a landman who can.
Won't cost anything to ask them.
Reputable landmen are a "hit and miss." The Forum has some good ones. I have one in mind , but I suggest that you navigate to the top of the page and read under the Forums and Members categories and send out your request for help. While you're there, join the Grayson County Group.
Good luck,
Pat
Thank you Pat.