Oil and Gas at Your Door? (2005 Edition) - Earthworks

MINERAL VS SURFACE RIGHTS
er, can be complicated. Usually, if you order a mineral guarantee report from a title/abstract
company, you will need to take that information to an attorney who can provide you with an
opinion based on the findings in the report. If you get mineral title insurance, you do not
normally need to get the legal opinion.
Be aware that title searches can be expensive. One Montana titles searcher quoted his hourly
fee for producing a mineral report at $126. 382 And there may be attorney fees on top of that.
4. You may want to consider hiring a landman.
While landmen typically work for oil and gas companies, determining mineral ownership is
a large component of their work, and experienced landmen should have significant expertise
in determining mineral ownership. Also, landmen may be more affordable than title
companies, but unlike title companies they may not be able to guarantee their findings.
5. Find out if the minerals have been dormant, and for how long.
As mentioned above, several states have laws that allow surface owners to claim minerals
beneath their lands if those minerals have been dormant for a certain period of time. There
may be other states that also have similar laws. Again, you will want to consult an attorney
to determine whether the dormant minerals now belong to you, or what steps you need to
take to re-claim these rights.
Mineral Versus Surface Rights
If someone owns or leases the mineral rights to oil and gas beneath your land, he or she has
the right to enter your property and search for minerals; and, if minerals are discovered, the
owner then has the right to remove those minerals.
Depending upon the state that you live in, some or all of the following “rights” may be
included in the search for and removal of minerals:
• the right to enter upon the surface for exploration and production of oil and gas
• the right to conduct geophysical exploration and seismic tests on the surface
• the right to mine caliche (dirt, gravel, etc.) for constructing roads, drill pads, etc. from the
premises
The Rights
“In Manistee County, the Michigan Department
of Environmental Quality (DEQ) has allowed
drilling in residential areas of natural gas wells
that contain high concentrations of hydrogen sulfide,
a poisonous chemical. DEQ officials defend
their action on the basis that the rights of mineral
and lease holders “must be respected.” In
effect, they appear to be determining that the
drillers’ rights are more important than the rights
of residents.”
— Schneider, Keith. 383
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