we are in the process of signing a oil & gas lease, we own 25% rights to land in ND. we are concerned about being sued by landowner or whomever owns the other 75% mineral rights should we go forth with this… is there something we should do for our protection???
Larry:
I am not an attorney, but on what grounds would the surface owner be able to sue a mineral rights owner for leasing their share of the minerals? You own property below the surface (minerals) which are often more valuable than the surface rights. Usually, if any legal action is taken, it is between the surface owner and the oil company whereas damages to surface areas have occurred and an agreement cannot be reached between the two parties.
Anyone could be sued for any reason. The likelihood of someone SUCCESSFULLY suing you for exercising your rights to produce your minerals are about 0%.
thank you for your input everyone- these things can be life changing- or not- can’t be to careful !!!
Dear Mr. Pritchett,
To more fully protect yourself, make certain that you lease has not only an extensive and complete hold harmless provision, but also an Environmental Protection and Indemnity Clause.