What is my mineral interest?

General Mineral Rights Discussion
1

I've been asked to sign a stipulation clarifying mineral rights interest on a deed from when Dad sold a portion of the surface he owned. Dad is no longer around to ask, and the landman and I understand the following clause differently:

... County of Weld, State of Colorado, save and except 3/4ths of all the oil, gas, and other minerals in, on and under the above described land

When Dad purchased the land, 1/2 the mineral rights had been held by a previous owner.

The question of the hour is: what is my mineral interest now?

Or, stated differently: what is the mineral interest conveyed to the purchaser by the above deed language?

Is it advisable to execute a stipulation, or is this language sufficiently clear?

Clif

2

If I understand what you are saying, This is what I see.

Your father only got 1/2 of the minerals when he purchases the land, so let say it's 160 acres and he only got 1/2 of it so it's 80 A.

Now you are saving 3/4th of the 80 Acres, so you have 60 Acres. But, there are lots of other question regarding this.

3

Hi, Clif -

We will need to see the entire document to respond accurately, but it sounds like the issue that was addressed in Duhig vs. Peavy Moore Lumber Co (see the attached or Google "Duhig Rule").

The key is whether the subject Deed stated that it was subject to all prior reservations, etc. before reserving 3/4 of the minerals?

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

68-duhigruleexplained12112.doc (85 KB)
4

Charles, thanks for the information.

As I understand the deed, it is a conveyance, not a reservation. Thus, the exception statement is simply expressing a limitation on what mineral rights are being conveyed; it is not addressing ownership of the excepted rights. This understanding would be consistent with the Duhig rule.

The document you shared is most certainly helpful - I believe you answered my question!

Virginia-

Your response answers another part of my curiosity- namely that the language of the deed isn't as clear as I thought it is! Perhaps it will be wise to execute a stipulation. <grin>

I would add one more step to your explanation: 3/4 of the acres are excepted, so 1/4, or 40 acres, are conveyed to the purchaser. As 1/2 is held by "party A", that left 1/4 to Dad when he executed the deed; which is consistent with the Duhig rule interpretation.

Thanks to both of you for responding! I'm satisfied that my question was answered.

Clif

5

Clif .. DON'T sign anything until you are absolutely sure of what you own and what it is that they want you to sign! I had to do some research to find the statute on how a deed was intentionally drawn up (with I'm sure the intent to acquire my minerals, eventually). The verbiage can sometimes be real tricky, so be careful!