Trying to figure out how much is owned in minerals and came across an old deed where the deed states “There is excepted 1/2 of the farmers royalty or one sixteenth part of the whole within and underlying tract”.
After some research, I THINK that means essentially 50% of the minerals. But would love thoughts from those who have dealt with this (and would love any articles detailing it more or why its called a Farmer’s royalty).
Usually, when you see, “within and underlying” or similar language, it’s going to be interpreted as oil and gas rights, not just royalty rights. However, I’d want to see other documents in the chain of title to be sure. Subsequent actions of the parties involved in that transaction could indicate a different interpretation. It’s dicey here in West Virginia, as you know.
I just realized that you asked specifically about the “farmers royalty”. I haven’t seen that exact phrase before, and a really quick search doesn’t bring up any results.
Not giving a legal opinion, just a historical guess. Many of the early leases had a 1/8th royalty as a minimum. If a farmer had both the surface and the minerals before severance then then that royalty might have logically been 1/8th. Some states have a 1/8th minimum royalty and some have a different minimum. You have to check the oil and gas code of the state for clarity. In this case you are looking at a 1/16th royalty which might not match the current code. Depends upon how they define “royalty” during the timeframe of the deed. Talk to an attorney.
Perhaps they referred to it as a “farmer’s royalty” because back then the owner of the mineral rights was often the landowner (and a farmer)? It appears at least in some areas and times it was referred to in that manner; e.g., see page 58 of this 1922 book: https://upload.wikimedia.org/wikipedia/commons/6/69/The_business_of_oil_production_(IA_businessofoilpro00john).pdf
There may of course have been other reasons it was referred to as “farmer’s royalty”. I have not seen the deed you refer to nor do I know the year of your deed.
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