I have 40 acres north of Mosby, MT on Old Stage Rd. My wife and I have been discussing for a few years about selling the land. Then, recently, we heard about the oil activity in the area. Land issues concerning oil and gas industry are something we know little or nothing about. So now we are in a delima- do we sell, or do we hold on for a while. Or is this really a non-issue for me? I know I can't get the answer but I am just looking for some direction or thoughts. I only have the surace rights. My land borders State and BLM in S35 T16N R30E.
Terry
If you are in an area of heavy oilfield activity I suppose it's possible that someone will want to run a pipeline across your property, a well pad, or need a yard to store pipe or sonething of the like. A wellpad might not take all your land and the rest of it might be less desirable although you could probably get more money for the few acres, it could be a net loss. Having a pipeline run across your property would diminish it's value at least technically and may make the property less desirable to other buyers. I don't know for certain but it may be possible that you could grant yourself unlimited and sole rights to easements in the sale of your surface. Property ownership is great if it's an investment or you are using the land but if it's just sitting there and costing taxes you could well be better off without it. Just some thoughts.
Terry:
In addition to what rw posted, if oilfield activity increases in the area, the possibilty of a salt water disposal well on the property would bring in some additional income for the surface owner.
So true, a salt water disposal well could be a better money maker than an oil well but it may be a slim chance.
It would be worthwhile -perhaps-to see IF you own mineral rights on this property. Sometimes
property is sold without including the mineral rights -which are retained by the previous owner.
So oil or gas, may not be yours.
Mr. Hansen stated that he did not own the mineral rights. I tend to take people at their word because if you assume they don't know what they are talking about, you can never get anywhere. It has bit me in the rear from time to time when people really had no idea of what they have. One lady in particular thought that because two wells were drilled upon a lease she inherited that she had some ownership in the wells themselves, which of course she did not. I take people at their words until I know different, because you have to start somewhere.Rose Harms said:
It would be worthwhile -perhaps-to see IF you own mineral rights on this property. Sometimes
property is sold without including the mineral rights -which are retained by the previous owner.
So oil or gas, may not be yours.
I missed the part about him only having surface rights. Sorry. I have mineral rights -
near Sumatra Montana. No drilling near there yet. But I keep hoping!!!
Yea, i don't own any mineral rights. When I bought the land I learned that there are about 50 other entities that have interest in the minerals. I guess the take away from this discussion is i probably won't get rich off any oil companies that may want to trespass or use my land, and it may have an adverse effect on the value of the land. Thank you for your responses.
Terry
Terry:
You are probably correct in that you won't get rich from oil company revenues but there is a possibility that you will recieve income via the other avenues discussed such as pipeline easements, etc. In the event this occurs in the future, do your homework and learn how to negotiate a good lease for any activity that might occur on your surface area.
Terry Hansen said:
Yea, i don't own any mineral rights. When I bought the land I learned that there are about 50 other entities that have interest in the minerals. I guess the take away from this discussion is i probably won't get rich off any oil companies that may want to trespass or use my land, and it may have an adverse effect on the value of the land. Thank you for your responses.
Terry