My Family member owns land and mineral rights in Ohio, he has signed a lease and now the ownership of some of his interests are in question. He has been paying the taxes and all cost on the land since 1974. The land has 2/5 of undivided interest heirs missing. The company who he has leased with wants to do an Abandoned Mineral rights. First what is this and can they do this? And if they do this will all the rights go to my family member if no one makes a claim? Also there was originally 5 heirs, then 1 died and his wife sold their shares to my family member. The company says since they do not have a will or probate leaving his share to his wife they can not pay on that part of the acreage at this time. What do I need to do to solve this problem? Third, if they have not paid the amount in question by the allotted time in the lease, can the lease be voided? Last Question: Is is in my family member's best interest to allow the person he signed the lease with handle finding the heirs or should he hire someone to do it for him? Do they have common interests legally?
First of all, even if he has paid taxes on the land since 1974, that should not have any effect on the mineral ownership. I say "should not" instead of "does not" because I do not know the laws in Ohio regarding mineral ownership, in one state I believe that the minerals automatically go with the surface, in others they can be severed but then must return to the surface owner, but in every state that I personally have worked (seven), the minerals are a separate estate from the surface (land) and can be severed forever.
Regarding the one heir who died, the company is right, they don't know that "his wife" had the authority to sell his portion of the minerals to your family member, so if they pay your family member they might be paying the wrong person. Until your family member proves to them that your family member is the rightful new owner, the company will place that portion of the royalties in "suspense" until the gap is cleared up. How does your family member prove the ownership to them? Either by sending them a certified copy of the deceased heir's Probate case, if there was one, or by sending them a certified copy of an Affidavit of Heirship for the deceased heir filed in the County where the minerals are located if he did NOT have a Will.
No, the Lease cannot be voided if they have not paid the royalties by a certain time due to the failure of the family member to provide the necessary documentation mentioned above. In fact, if such documentation is not forthcoming after a certain amount of time specified in statute, the company probably has a legal obligation to escheat the accumulated royalties, plus interest, if any, to the state government as "unclaimed property."
No, you should not "allow the person he signed the lease with to handle finding the heirs," you should do it yourself or hire somebody to help you do so, because I would bet that in every state in this country it is the responsibility of the mineral owner to create, file, and produce copies of the necessary documentation to prove his mineral ownership, not the responsibility of the oil-and-gas company.
reading about a returned check--draft--the lease with ss number gone, i signed a lease--sent it and the draft in--the bank released the lease and held the draft money.--i went to the county att. he called the bank--wise county i thnk--told them it was a violation of the law to release the lease and hold the money. he got sme back talk--reminded them he was a landman lawyer before being elected county att;--either return the lease or send payment or face court action. it is the bank's mistake. after more thought i think he wanted to try and sell my lease for more money--anyway the bank had the choice or returning the lease--send the money or face state charges--they sent the money.