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Oil & Gas Lease ?

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ZZGAMAZZ

Thread Starter
Senior Member
Supporting Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Howdy Mountaineers,

I'm from Weirton, WV, with family originally from further south.

My mom was contacted by a company recently concerning property in Ritchie County that her family apparently owned, although she's unaware of any ownership rights.

She told them that I'm her heir, and I received an "oil & gas" lease for property in Ritchie County. I conducted some basic on-line research but don't understand what I'm being asked to sign, or why I'm being asked to sign if I don't own the property.

Any insight that y'all might have would be greatly appreciated.

Regards.

p.s. How bout dem Mountaineers? They came within a few points of beating Bama and TCU. If the ball had bounced the other way, and if they would have received some decent officiating they could easily be in the top 10 in the Country. Seems like they're establishing another min-dynasty although I never understand why they migrated to the new conference--although I can't remember the conferenced they belonged to when I attended school in the early 70's although I remember that they played Davidson in BBall as couched by Left Drisell before he went on the fame at MD.
 

Pittsburgh Pete

Elite Member
Joined
May 6, 2008
Professional Status
Certified General Appraiser
State
Pennsylvania
When it was sold did it include mineral rights? There is a case in PA that determined that the mineral rights associated with the Marcellus Shale are not included in gas/oil rights that might have been conveyed--considered two separate property rights. You might contact an attorney in the area.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Often Mineral rights are reserved. So the only thing transferred are the surface rights. The fee simple is all the rights, so the surface owner likely has no minerals or sometimes, the seller may keep only 50% of the minerals.

The worst aspect of a lease is the pesky "post-production expenses" - they hose you on those. Take a lesser royalty with NO POST-PRODUCTION expenses. Call Bob Hart, a petroleum engineer in Charleston, tell him I sent you. Bob is president of the Appalachia chapter of Natl Assoc. of Royalty Owners.
 
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