What is Rule 37 - Exception list; Unleased Undivided mineral interest within a pooled survey?

Landman Discussion
1

Looking this weekend at some Oil / Gas records on Wells in very close proximity to land in San Jacinto County Tx I have leased over the years. I am an undivided interest mineral owner on several parcels. In three instances the parcels were leased by the cousins but I wasn't notified.

I am also a mortgage processor for conventional loans for a major bank and look at legals and surveys every day - that piece isn't Greek to me. Some of the Oil / Gas Records and the mineral lease piece is - although I am learning very quickly.

I ran across an active well very close to our mineral property and on the survey showing the pooled parcels it reads "See Rule 57 notice for unleased, undivided mineral interest owners"

I also found the "Rule 57 notice" . No, I wasn't on it and I have a pretty good idea who owns the surface rights....and they weren't on this list either.

Questions.

1. What is Rule 57?

2. Why would there be unleased mineral interest owners?


3. If the pooled area isn't leased by all and there is production, what happens to those who are unleased? Do they still get their royalty's? Or if they "can't be found" is that money held aside in an account for a number of years to be claimed?

Thanks.

2

I am not an expert, but can maybe help a little. I'm sure you know this, but the oil company technically only needs a 50% leasehold to drill.

1. Make sure you own the minerals.

2. Although a well is close, it may not be on your property. It depends what the unit or spacing the well is associated with, which can vary at different depths.

3. If the mineral owner cannot be found, the money sits in a trust until said owner is found.

I would start by filing a statement of claim under you description. (It is simply an affidavit stating you own a mineral interest). After that, I would contact the operator of the well and explain you situation.

If you do own, great, it will probably work out better for you in the long run not signing a lease

Hope I helped.