Hello all, I’m curious about offers that include verbiage including “all mineral rights in the county”, while only specifically referencing one or two by name or description. I know it’s common practice for Landmen etc, to make these general offers, but if I’ve got undiscovered rights (which has happened) why would I sign away “all” mineral rights in a county (Ward, in this case) when made an offer only on two specific, producing wells, with a clause stating “this offer is for all owned in the county” and does that verbiage hold up as a blanket document for mineral rights still in my grandfather’s name, but would fall to myself and my sister because of the aff of heirship that is on file in the courthouse? Seems like a vague, vast net thrown to catch a much for as little as possible. Thanks all.
Never seen anything like that personally, but I wouldn’t sign anything that includes unnamed future minerals you may or may not own. There’s no way to value them, and essentially, you’d just be throwing them into an agreement for free
Yes, it is very common, so be very careful. Many of these groups know about future drilling coming your way, so they are casting a wide net and hoping people only know about their current well and not upcoming activity, They want to buy low and make a profit off of the future wells, any funds in suspense and profit from the current well(s). If any offer comes with a draft check attached or is a one year royalty deed, run away very quickly! Mark through it with a big magic marker but save for your files.
You need to get the minerals in your name first. Meaning, you and your sister need to convey the minerals from your grandfathers estate into each of you separatley before you do anything.
Yes, that language would hold up in court to acquire all your minerals.
It seems like you are at the point of selling, tell the person you are talking to, “I will sell the 1-2 sections discussed, send over a mineral deed with those 1-2 sections with the specific legal descriptions and strike the all mineral rights in the county verbage” and review what they send over. If you arent familiar with these types of transactions, ask them to put the following clause in the granting langauge or exhibit A. “It is the intent of the Grantor to convey ARTI into the 2 sections listed above. ALL other outside lands and minerals owned are herein reserved unto the Grantor and his/her heirs”
Many buyers send out offers right before drilling is coming, hoping to get shallow production as the letter says, but knowing that deeper horizontal drilling will bring much more revenue. Some buyers stalk the unclaimed funds and send letters to unsuspecting families knowing that royalties are waiting at the state treasurer’s office or are in suspense at the operator. It is wise to find out everything you can about your minerals and pending activity before considering selling.
I’ve see companies make offers for one tract of land and put that language on the Deed where you sell “all” rights in the State of Texas! These companies usually put a tract of land that isn’t worth much knowing the owner owned other assets worth a LOT more. This is so they can slip it past the radar in case someone looks into the lands. It’s a practice of unethical mineral buyers. Once you sign a deed like that, there is no way to recover them without a lawsuit, and it’s likely not worth the time and money. Be sure to review every line in the deed and never ever sign anything like that.
In better areas I think this is a bad practice to use blanket deeds. However, there are scenarios where blanket deeds are good. In mature areas with little future potential, a seller may not want to come back to the table years later, or may not want their heirs to have to do the same.
Imagine selling your producing minerals only. Twenty years after you die someone finds out you own a tiny interest in a new lease they want. It’s worth less than the cost of doing probate on your estate to convey clear title to your heirs. Do you want them to have that mess? Sure your heirs might be able to lease and get in pay status, but are they willing / capable to manage it? And without proper probate on it, it may never have marketable title. Blanket deeds can be beneficial in that you prevent future problems from arising. But I definitely wouldn’t use them in the better basins where there may be a lot of value in unknown and presumably non-producing minerals.
The Texas Supreme Court has held that “if” the specific conveyance is accurate & good, then the general conveyance is good. That is how they get away with obtaining all of a party’s rights while only paying for the specific property listed. Be very, very careful.
Best practice is if you are going to sell, then the deed should only contain the specific property reference you intend to sell. All additional “catch all” or specialty clauses should be stricken unless you receive fair compensation for their inclusion. If you are not sure, then get professional assistance prior to an sale.
Thanks for the response- that’s exactly what these have been- the bank draft with an attached deed conveyance. Slimy business The verbiage"the enclosed Mineral and Royalty Deed is intended to convey all mineral and royalty interest that you own in Ward County, including the interest referenced on this deed." This one does say call them if there’s more or less to discuss, but they others don’t, they simply imply that an outright total sale is all that’s offered. I did sell a well in Winkler years ago and upon rereading, noticed it contains the ‘all my mineral rights’ clause, I still have some minerals in Winkler, *or do I ? At the time, I needed the money, and recall being told that it was just a blanket form, only what was named was being sold, but having spent lots of time on this forum, I know truth is relative to a certain degree. It’s a contract, but have these ever been tested or disputed so precedence is established? I read lawyerese pretty well, and it sounds like they have really slipped in a clause that uses the spirit of the actual offer to take advantage of folks.
Those are all valid considerations, thank you.
Tector, it is your duty to review the deed prior to execution. With that said, a few companies deal in some may be consider deceptive practices. If you fail to ask questions and/or get professional advice, then you are subject to the terms of the deed. These types of offers are made with the idea that sellers will focus only on the money and will not pay the cost of professional advice due to wanting to retain the full purchase offer. Should the Buyers use certain terms or phrases to induce a Seller? The legal and ethical answer is no. Can you unwind a sale due to these types of activities? The answer is a qualified yes, but there are costs and evidence issues risks associated with this type of litigation. I divide mineral owners into 3 groups:
- Inactive - Rarely perform research and no continuing education,
- Active - Perform research and continuing education with some property management protocols,
- Professional - Development of a property management system that incorporates ongoing research and investment. This forum is a great place to get started since you have great contributors like @M_Barnes and @Richard_Winblad to name a few.
Tector, it sounds like you are referencing a mass mail letter that comes with a bank draft and deed. It costs the sender a few pennies to send the additional 2-3 pages to make them look more legitimate. These mean nothing, unless of course you sign them. I have no idea why anyone would sign them without talking to them first, if they want to sell then limiting it to specific section(s), especially when it says it includes all your rights in said county, but I guess 1-2 people out of 5k letters they send out do.
Bob77, any data source for your “2 out of 5000” guess would be appreciated if you’d share a link. Thanks.