Can three individuals out of four undivided mineral rights owners give permission to lease their oil, gas, mineral rights without the others permission in the state of Illinois?
yes. The lessee oil company would own 3/4 of the lease rights, but not the other 1/4.
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Can anyone point me to the governing statute? I need to see what the actual law says. Thanks in advance
It is not statutory. It is common law, or law that has been handed down for two hundred or more years. You are cotenants with the other three parties. A more thorough explanation is as follow:
- In real estate, an undivided interest refers to a co-ownership scenario whereby each owner owns a percentage share in the property.
It occurs in situations where a piece of real property is held by two or more persons without being subdivided or divided among the owners.
Thus, the land itself is a single undivided parcel and every owner has an equal right to enjoy the entire property.
However, despite having an equal right to enjoy the property, each owner only owns a percentage share in the lot.
Think of it like owning shares in a company.
- What is tenancy in common? Tenancy in common is a form of co-ownership that is often used between unrelated individuals.
Tenants in common may own unequal shares of a property, but if they are not specifically designated (3/4 versus 1/4) then they are presumed to be equal or proportionate.
Tenants in common are said to hold “undivided” interests with the other co-owners.
Instead of owning one physical half of the property (the west half or the east half), they are rather considered to own a certain interest in the entire parcel of land.
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Go to the magnifying glass [Search] icon at the top right side of the page and enter “Judon Fambrough” then open the thread titled “Well paid out after going non-consent” and scroll down to post with the url to the Fambrough paper.
See the paper written by Judon Fambrough linked in the following thread:
Makes sense That’s how I understand it now. We are grantees and have undivided interests in the same parcel of land. 3 of us have 1/6 interest one has half. From what I’ve been told now and read now in Illinois if you have interest or more agreeing on leasing or selling you can go ahead, as long as you pay all grantees. PROPERTY (765 ILCS 520/) Oil and Gas Rights Act.
(765 ILCS 520/0.01) (from Ch. 96 1/2, par. 4900)
Sec. 0.01. Short title. This Act may be cited as the Oil and Gas Rights Act.
(Source: P.A. 86-1324.)
(765 ILCS 520/1) (from Ch. 96 1/2, par. 4901)
Sec. 1. When the right to drill for and remove oil and gas from any lands in this State is owned by joint tenants, or tenants in common, whether such right or title is derived by purchase, legacy or descent, or whether any or all of the claimants are minors or adults, any one or more of the persons owning a 1/2 interest or more in the right to drill for and remove the oil and gas from such lands may be authorized to drill for and remove oil and gas from such lands in the manner hereinafter provided.