If you’re selling your minerals to an outside party, for real hard cash and not just a “I wanna get rid of this junk” deed, please don’t let this line be in your deed. Make the buyer do like, one more hour of research to clarify exactly what you own and write specifically what you’re selling.
Nothing like doing a retrospective appraisal for a client who sold their minerals, to find there’s a whole section of minerals nearby that wasn’t valued or referenced in the sale, but then look at the conveyance to the buyer and see this line:
Interestingly, I don’t think these were predatory buyers. I’m also not in the business of badmouthing names unless criminal, and in that case, an internet forum isn’t the place for it anyway. I’ve found that many buyers are including what they think are genuinely helpful and “normal” terms and clauses, but are too deep into the forest to see how bizarre the terms seem from a distance.
“It is the intention of the grantor to convey this Ferrari, plus any other vehicles owned in the city.”
“It is the intention of the grantor to sell this house, and any other house they may own in the neighborhood.”
Purely from a recordkeeping side of things, the title get messy this way. If you’re going to purchase it and will have to understand title in order to know what you now own, just take the time to file it correctly.
But from a business standpoint (and not a legal standpoint since I’m not a lawyer), I have rarely seen it used well. Possible decent uses of this term:
If you have scattered non-op and ORRI across 8 counties and you just want to be done with it
If the buyer is getting a good deal on producing properties and in returns is taking your junk plugging liabilities that may be lingering and you want no part of it
if you’re just transferring from one entity to another like with an inheritance or LLC/LP formation
That said…I usually see it being used when it’s a buyer is purchasing slightly complex minerals in a high value area and they want to make sure they get it and there was not an equally-sophisticated grantor on the other side requesting, “Pretty please include this blanket term. It’d really save me the hassle of having to sell this for more money later on.”
It’s nothing more than a skilled buyer taking advantage of a non skilled seller. It’s normal and healthy. The only recourse a seller has is a. Get the money up front knowing royalties will be very slim. Or b. Sign the fouled up lease get money then deny access until lease is fixed.
Ask them if they are going to Frac. If they say I don’t know. (They are). That’s another 20,000$ payable now. Get it upfront. Don’t buy the royalties twice
While you’re welcome to your opinion, I’ll be happy to state that taking advantage of someone knowingly is nothing to call “healthy”. As for normal, I’m afraid these type of one-sided transactions are far too “normal” in the mineral buying arena.
Thus I join the myriad of wise voices who say, if you are a citizen mineral owner, and not experienced in the industry, you’ll do yourself a favor by accessing qualified professional experienced help on these matters.
