Manage Your Minerals – Lesson One

By | October 25, 2015

As an appraiser of mineral rights, it is surprising how few of us actually track our mineral properties. We lack even a rudimentary understanding of the legal description. Often these minerals are transferred on hand written documents with really bad legals. This leads to serious problems. You may have deeds that are in conflict with what is actually there.
Over-conveyance is curable but the outcome may disappoint you. The courts rule most often using the Duhig Rule. Charles Sartain explains the Duhig Rule in his post at this link :
Duhig Rule

Basically, it says that if bad conveyance results and all parties cannot be made whole, the overage is taken from the grantor’s land. Below is an example where the ownership is in doubt.
The legal provided stated the following

…100% interest in and to all of the oil, gas and other mineral in and under and that may be produced from the following describe lands situated in Roger Mills County, state of Oklahoma, to-wit:
Section Thirty-five (35) and Thirty-six (36) Township sixteen (16) North, Range Twenty-three (23) West, Roger Mills County, Oklahoma
Containing 55.8 acres, more or less….

Subsequent title work indicated the actual amount to the grantees was 14.6 acres. The legal description contains the description to 1,280 acres, and the deed does not specify where the 55.8 acres is. Further, the entire property was in section 36 according to title work. There is no mineral property in the other section.
Such bad title work results in making the job of a mineral appraiser difficult to set a per acre value to the property, or to apply a per acre value to the same. Yes, it costs money to clear clouded titles, to bring up reservation of minerals into a more defensible mineral deed, but the potential for errors and the liability of misallocation of accurate legals can result in much greater issues in the future.

Walking Beam pumps for sale - Ohio 2015

Walking Beam pumps for sale – Ohio 2015