Hello everyone, here is the situation and my question:
Recently, my mother mentioned that her grandfather homesteaded land in Powder River County, Montana near Broadus. My great grandfather sold this 500 acres of land in 1946. On the deed, it specifies that he and his heirs will retain ownership of 6 and 1/4 percent royalties of minerals in the land. Since that sale, the land was sold only once more in 1965. On that 1965 deed, it specifies that the purchase excluded mineral rights which are retained by the 1965 sellers. Based on this information it seems that my great grandfather's heirs are owners of 6 and 1/4 percent of the mineral rights and the 1965 sellers own the rest of the mineral rights.
Further, I have looked at county records and there is no further mention of any selling or purchasing of mineral rights on this property.
Based on the legal description of the land I was able to find the property. After a little research it seems apparent that this land has never had mineral activity.
Theoretically, it seems that the heirs of my great grandfather own 6 and 1/4 percent of the mineral rights. How can I confirm this? If it is confirmed, how can I get a new document stating such?
I really know nothing about this process but am having fun looking at these old docs. Thanks for taking the time to read this post!
Dale
Dear Mr. Kereczman,
You might not have a mineral interest at all. The wording of the reservation will make most think that a royalty interest (share of production) was reserved. Not the other elements of the mineral estate, such as leasing rights, bonus, delay rentals, etc.
It would likely be best if an attorney was involved to interpret the reservation and to file whatever documents that need to be filed to place record title into his heirs.
Best
Buddy Cotten
You say "On the deed, it specifies that he and his heirs will retain ownership of 6 and 1/4 percent royalties of minerals in the land." Others with better knowledge will weigh in on this, but in the meantime it would be helpful if you can give us the exact language, punctuation included, of this reservation in the deed. Minerals and royalties are different things. I'll be watching to see what others have to say.
Thank you both for replying to my post. Below is the exact language from the deed:
"However, reserving unto the parties of the first part {my great grandfather} and their heirs forever a 6 and 1/4% royalty of all the oil, gas and minerals produced and saved from the above described lands in which the parties of the first part have the mineral rights"
any additional insight will be greatly appreciated.
Thank You,
Dale
Dale,
Mr. Cotten's comments seem proven correct by your last post. Your great grandfather reserved a share of the minerals "produced and saved" . It seems that from the 1940's to 1960's, Montana land owners sold out and reserved mineral rights for minerals in place and, like your great grandfather, reserved a right to the minerals after they are removed from the earth. Sellers often spoke of reserved mineral ownership and produced minerals as "Royalty Rights" The language of the reservation usually prevail. However, I've seen transfers of both types in the same probate or deed of distribution document. I refer those to experts like Mr Cotten.
You may want to make it your hobby to perfect the title into your name and research the geology of the specific 500 acres as you are in a sedimentary basin that is not only a huge producer of coal, but oil and gas and in some areas, bentonite. Maybe somebody owes your family a share of the minerals that have been extracted and can't find you.
Dale Kereczman said:
Thank you both for replying to my post. Below is the exact language from the deed:
"However, reserving unto the parties of the first part {my great grandfather} and their heirs forever a 6 and 1/4% royalty of all the oil, gas and minerals produced and saved from the above described lands in which the parties of the first part have the mineral rights"
any additional insight will be greatly appreciated.
Thank You,
Dale
I thought the exact same thing that Buddy wrote in his first post, that it is a royalty interest, not a mineral interest. The language "produced and saved" confirms it for me, that is royalty language.