My Aunt and I each have full mineral rights to 5 mineral acres in Ohio. We are starting the process to lease those rights to a gas and oil drilling company. We are still in the negotiation phase, but have discovered that the oil company only wants to credit us each with 2.5 mineral acres each. Although we went to court and legally claimed our rights and the courts named us as sole owners, the oil company states that they are concerned about future claims and thus only will pay to lease 2.5 acres each despite the courts ruling. Are the remaining acres held in escrow and if so how long? Is there something else I should do? This company is the only one leasing in my area.
Hi Mittens: Without knowing all the facts, here is an option. If they only want to pay your for 2.5 acres, then specify on the lease itself, that you are only leasing 2.50 acres and the lease is to only cover 2.5 acres and that you are reserving any other interests that you own unto yourself. Then you need to ask them who they are crediting the other 2.5 acres to and have them produce the documents as to why they are crediting the parties as they are. Good Luck
mittens3,
2.5 acres for each of you or 2.5 total?
It is a total of 10 mineral acres with my Aunt and I each having 5 acres. They want to credit with 2.5 acres each.
They have to have a reason for only wanting to pay for half the minerals you claim. Their being concerned about future claims is not valid if you have a Final Judgment from an Ohio Court that declares you and your aunt as the full owners. That judgment is as good as having a deed. You should obtain a certified copy of the final judgment and record it with the county clerk. Procedurally there is a process for appeals (IN TEXAS) for up to two years after a final judgment. I am not familiar with Ohio law, so you may want to seek advice from an attorney there. If the oil company refuses to pay the full 10 acres, I would refuse to sign the lease. Chances are another company would be glad to take it if there is the least bit of competition in the area.
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