Executive Rights in Oil and Gas

Ownership and Title
1

I really need some help here!!!

Recently I received a phone call telling me that I had an interesting situation regarding a farm my wife and I have in Tyler Co. West Virginia. According to the Landman, of the 59 acres that we own, I had the executive right to lease 37.91 acres. He informed me that I had no mineral rights, just the right to lease and the only money that I would get would be the bonus.

Here is where it gets complicated. The property already has a lease on the minerals for 39.33 acres. The property owner that I purchased the property from said that he owned 2/3 of the minerals and that someone else owned 1/3. These minerals were supposed to be included in the purchase. When I told the landman of this he seemed like he didn't know anything about it and was writing a bunch of things down like he hadn't even researched it. I called the previous owner and he still insisted that the land man was incorrect and that the minerals were his, now mine. I have no reason not to believe the previous landowner because of our previous relationship. I was however wondering if the previous gas company that leased it did not tell him that he did not own the mineral rights just the right to lease. Are they allowed to refrain from notifing the landowner of executive leasing rights??? When I purchased the farm, mineral rights were not a big deal (pre play) and I guess I should have researched it. The mineral rights were not a selling point for me anyways. Should I try and research this myself or write off the landman as not really doing his homework. the Lease is currently in TRIAD HUNTER and the landman that called me was from LONE TREE ENERGY working for ANTERO RESOURCES. It seems to me that gas companies are hiring anybody that can read deed because of the massive research going on at our county courthouse.

2

No, if what he told you is true, the executive owner should have been paid by current lessee if that is what it says.

Ask landman to scan and email you the documents that pertain to the creation of executive rights. Since it isn't your understanding of what you own, I wouldn't take his word for it.

3

Dave, The man I purchased the farm from was paid bonus money, but from the previous lease that currently holds. Not the company that called me. They made no mention of him having the executive rights either when it was leased.

4

Makes you wonder how anyone could be that bad. I wonder where he got the executive rights notion from, unless the one who leased your seller was that bad.

5

Yes, thank you for your reply Dave. I think that requesting the documents would be a great idea but its doubtful that they would provide it. He did however say that it was written back in 1903 that may give me a start on where to look at the courthouse if he was even credible.

6

There's a chance since he was taking notes, that he will come back and agree with you. If he comes back still saying that you only own executive rights, and that is not how the prior owner was leased, then I would still insist on the documentation.