I sold my 25 acres in atascosa county 5 years ago and the contract states I keep the mineral rights for 10 years and then they go to the landowner. It is currently producing with 3 wells for the last 2 years. Can I sell my mineral rights to a company thats offering to buy? Do I inform them that I wont own the rights anymore in 5 years?
yes, you can sell your rights. You should inform them of the reversion. They will probably pick it up when they examine the records. But it could save everybody a lot of wasted time for them to know that up front.
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You need to get an attorney to read the contract you signed for the sale. It might be that you may still be the owner if they are producing at the end of the 10 year term. Depending upon how it was written.
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I had a friend that sold a 180 Acres that had 100% of the Mineral Rights. He sold it to a lawyer who talked him in to letting him draw up the closing documents. The lawyer “slipped in language” that transferred the mineral rights to the lawyer at the end of a 10 year term unless there was oil and gas production. There was no production, but a few months after the 10 year’s, leasing began. Chesapeake was paying $850/net acre for a 3 year term. Proof reading by someone who knows what they are doing is very important. Get someone to read your documents. My friend had no intention to transfer any of the minerals but that’s what happened.
Do you understand that your rights expire at the end of the 10 year term or at the end of continuous production? That can be a major difference in economic value for your decision process. @tim_dowd gives solid advice.
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