Is it true that I can sell my land AND still keep the oil and gas?
Absolutely! Most landowners do not realize that they can sell their property AND still keep the oil and gas underneath for themselves and future generations. This is called a “severance”, whereby the surface ownership goes one way and the mineral ownership goes another, creating two separate “estates” on a single property. As the mineral owner, you actually have the “dominate estate”, which means that the surface owner cannot restrict your right to enjoy and use your minerals.
Someone says that they own the oil and gas under my land but I think that I do!
Relax. We offer services that provide detailed reports proving exactly what you own and if you wish, exactly what anyone else owns under your land, with contact information if available. All reports are produced just for you, using records from your county and related to your property. We will provide and explain a detailed, easy to understand history of your property going back over 120 years and show you everything that has happened with your land. We will also include a copy of the deed to your property for free.
What happens if I sell my land, reserve all of the minerals, and then the current owners start to subdivide or split up the property?
Okay. Lets says you own 100 acres of land and you sell all of the surface, retaining the oil and gas. The then current owners divide that property into 10 acre lots and start to sell them, some of the 10 acre lots are further divided into 2 acre lots, and so on. Soon you can have dozens of parcels of land, but this does NOT affect the original 100 acres of oil and gas. When the oil and gas was reserved, or severed under the 100 acres, it essentially created a snap shot of the underlying mineral estate as it stood at that time. No matter what happens to the overlying surface, the minerals underneath remain with the complete 100 acres. This is considered an “undivided interest”, meaning that it does not reside with any one part of the land but all of the land as it was at the time of the severance (as it was when it was separated from the surface). This also explains, for example, how your neighbor can own and lease the minerals under your land.
Royalty vs. Oil and Gas in Place. What are royalties?
Many people confuse royalty and oil and gas in place. The two things are very different. Royalties are the money you make off of the oil and gas while the oil and gas in place are the physical minerals under the land, the actual oil and gas estate. Royalty translates into actual dollars when the oil and/or gas is produced from the well.
Let use an example of a house. Lets say you want to get into the landlording side of things, and you buy a rental property and lease it to a tenant. The rent you make off of the house = royalties, the house itself = oil and gas in place, lease = lease, tenant = oil and gas company.
Much like you can sell or retain part or all of a piece of land (the surface), you can sell all or part of the oil and gas AND/OR the royalties. When you retain or buy royalties, you become a non-participating owner of the land, or in other words you bear none of the cost associated with the land or the production thereof, you simply make money off of the production of the oil and gas. Likewise, as a royalty owner, you will not sign any leases or collect any bonus. If this type of ownership appeals to you, as it does to many, Royalty Land Group can prepare an ironclad deed and record this transaction in public records to insure that you keep and retain the oil and gas royalties for yourself and future generations.
How do I know I got a fair deal when I leased my property?
Good question. Generally speaking, oil and gas companies are not “out to get you”. They have a job to do: lease property, develop it, and sell it. By law, companies MUST give you a fair royalty value, in the form of a percentage, when they lease the land. Royalty translates into actual dollars when the oil and/or gas is produced from the well. Typically as the mineral owner, the minimum amount that you can receive is 1/8 or 12.5%. As with most things, this can be negotiated up from 12.5% which translates into a lot more money in your pocket. Likewise, many other aspects of the lease can be negotiated as well if you know what you are doing. Royalty Land Group can help negotiate a top-dollar lease AND protect your land, among other things. As the mineral owner, what you can potentially make from a properly negotiated lease in your favor will far exceed the minimal expense of having an expert negotiate for you.
Can I sell just part of my minerals to someone else?
Yes! The “mineral estate” is much like the “surface estate”, meaning that you are free to do with it as you please. If you are interested in selling part of your oil and gas, we can assist with that.
What if I am interested in separating my minerals from my land but not interested in selling the land right now?
No problem. You do not have to actually sell your land in order to separate the minerals. Here at Royalty Land Group we can prepare a situation specific deed and record this transaction in public records to insure that you keep and retain the oil and gas for yourself and future generations.
How can I sell my land and still keep the mineral rights?
The process is fairly foreign to many in the real estate world, even real estate attorneys, and when it is done often times it is not executed properly. The process of selling the surface property and retaining minerals is called “reservation”. There are literally volumes of books in the mineral law world that deal with reservations. A ll too seldom when a deed is executed whereby the granting party intends to reserve the oil and gas, the verbiage used is not adequate enough to properly retain those rights. At Royalty Land Group, we can prepare an ironclad reservation when you sell your property and record this transaction in public records to insure that you keep and retain the oil and gas for yourself and future generations.
I own some land but have no idea what I own under that land. Can you help?
You are in luck. We offer services just for you, providing detailed reports describing exactly what you own and if you wish, exactly what anyone else owns under your land. All reports are produced individually, just for you, using records from your county and related to your property. We will provide a detailed and easy to understand history, which will be carefully explained, showing your property going back over 120 years.
What is the Ohio Dormant Minerals Act (ODMA) ?
Unlike other mineral rich states, Ohio has a special act that has the potential to revest minerals (oil and gas) with the surface of the land. The Dormant Mineral Act, (ODMA) in short, governs the ownership rights of minerals that have been severed (separated from the surface) and sets forth conditions and procedures to preserve the rights with the mineral owner or abandoned those rights of the surface owner. The ODMA was recently taken up by the Ohio Supreme Court to clarify the 1989 and 2006 versions with litigation still pending. If you are a landowner and wish to regain your minerals, or a mineral owner and wish to preserve those rights, please contact us for services.
Is the term “Minerals” the same as saying oil and gas?
Generally the terms are interchangeable. However in some states, such as Pennsylvania, the term “minerals” generally does not include oil and gas in a reservation, without specific mention of oil and gas in relation to the minerals in question, and thus has been generally construed to mean coal. In other states, such as Ohio and West Virginia, the term mineral DOES include oil and gas as well as other mineral deposits, i.e. coal.
What products and services do you offer?
Depends on the client. We don’t have the client conform to our products and services, we conform to theirs. Basically, we offer any and all services related to land, oil and gas
Who are we and why did we get started?
Every member of Royalty worked for large law firms dealing with oil, gas and minerals, from all sides of the business. As the firms grew due to the oil and gas boom, so did their prices as the quality diminished. We set out to change that- reduce cost to the client while providing top-notch quality and accuracy.