Hi everyone, my apologies first off for the vague title. I am BRAND new to even the concept of mineral rights. My husband and I just relocated about three weeks ago from RI to NY. We are temporarily renting while we look for a suitable property to purchase.
In the process of researching properties, we began to notice that every property referred to OGM rights and whether they conveyed, didn't convey, were leased, were not leased.
From the reading we have done thus far, we have gathered that the part of NY that we have moved to (the southern tier) is on the verge of some big drilling and whatnot. Something about Marcellus shale.
We have gathered that surface rights are as they sound...owning the surface of a piece of property. And that mineral rights pertain to everything underneath the surface. We have gathered that having a lease means somebody has the right to drill on your land, either above or underneath.
One property that we were looking at had about 40 acres and the seller was retaining the mineral rights with no existing lease. What does this mean for us in regards to the future of the land?
One property that we are interested in sits on maybe 2 acres and the sellers have an existing lease and are conveying the mineral rights. Does this mean we will have royalties? What kind of royalties, how long, and what kind of damage to the land would we expect?
The second property, in particular, is one that we really like. It is a bit overpriced for our budget though. Would it be possible to agree with the seller for them to keep their mineral rights and lease for a certain period of time in exchange for a lower sale price on the home? Is that even advisable?
Let's say we purchase a property with no existing lease and with OGM conveying. What if we're approached with a lease offer in the future? How do we work that? What do we need to know?
Any help is greatly appreciated. We are very very green in this market and therefore, very easily taken advantage of. I am here because I recognize the risks we're in and I'm hoping to mitigate that by asking lots of questions. Thanks again!