MRP 277: Listener Questions - February 2025 – The Mineral Rights Podcast

In this month’s episode, we answer a diverse set of listener questions submitted by Julie, Tom, Dan, Nicole, Melissa, Erik, and Gary. Julie asked about how to address post-production costs that a previous operator improperly deducted. Tom asked about pooling and what happens if another landowner refuses to lease their minerals. Dan wrote about issues with notifying his operator about a change in ownership for the minerals he purchased. Melissa reached out after experiencing an oil spill on her property, seeking guidance on surface use agreements. Erik contacted us regarding challenges with funding an Exemption Trust with his father’s Texas mineral rights and navigating suspended payments and family dynamics. Finally, Gary wrote about a landman approaching him regarding potential heir rights to 500 acres of mineral rights in Freestone County, Texas, dating back to 1800s deed documents, and he is seeking guidance on handling a ratification request. These questions highlight some common challenges mineral owners face when managing their interests.

Many of the questions in this episode are covered in more depth in my Mineral Management Basics online course, from how to read a legal description, how to perform a title search, and how to identify nearby oil and gas activity, and how to determine if you should be getting paid on a well.

Thanks again to everyone who left a review or who submitted a listener question! If you have a question about your minerals or royalties, you can send it to feedback@mineralrightspodcast.com!

If this has been helpful, please take a moment and leave us an honest rating & review on Apple Podcasts. This feedback really helps keep us going and helps make sure that we are putting out content that is tailored to your needs.

Listener Question #1

Matt, I have a question I am struggling with and per your email below, thought you maybe able to help me with it.

I have a mineral interest in ND. The oil and gas lease that the mineral interest is subject to has a clause that prohibits the deduction of post production costs. The operator of the wells covered by the mineral interests has ignored or not responded to requests I have made in writing to reimburse me for the deductions taken contrary to the lease terms and to discontinue taking the deductions going forward. The operator of the interests has changed several times over the years. Recently the latest operator has agreed to reimburse me for the deductions taken but only for the time period the new operator has owned the wells. The wells have been producing for several years prior to the new operator’s ownership. The oil and gas lease provides that the lessee, its, successors and assigns, are bound by the terms and conditions of the oil and lease.

Is the new operator obligated to reimburse me for deductions taken contrary to the lease agreement for the term of the agreement (provided the statute of limitations has not run)? Or can the new operator limit its liability and only reimburse me for the time period it owns the oil and gas lease?

Julie

Listener Question #2

Hi Matt,

You have some great podcasts and your knowledge is outrageously good!

I have two questions and I hope you would be so kind to help me with.

1. I have some mineral rights on some Illinois farmland. The current landowner has mineral rights as well. If an oil lease is offered to us both and I agree to mine and sign it, does the landowner have to sign his lease for drilling to occur? In other words, does a landowner have the power to not allow drilling on his land whether other mineral owners would like the drilling to occur?

2. As a mineral right owner, is there a way I can learn who all of the other mineral rights owners are on the same property?

Thanks,

Tom

Listener Question #3

Hi Matt,

I recently purchased OGM rights for 17.96 acres in Pennsylvania (closed back in May of 2024). Two gas wells have already been drilled (second gas well was completed back in Mid-May), one each in the two units that I’m pooled with (one pooled unit is about 1,259 acres and the other is about 1054 acres). The wells haven’t been put online yet. The #1 thing that I’m hoping to get help with is similar to your experience, the change of ownership. I went through a land broker for my purchase, and they told me that they would record my deed in the county/township of purchase and notify the oil and gas operator of the change of ownership. Sounds like I had better follow up with my own notification asap, based on your experience. I took out a home equity loan to make my OGM purchase, so the royalties are very important to me for making my loan payment each month (i.e., it’s not just extra income). I can cover the entire loan payment on my own if I absolutely had to, but obviously that isn’t ideal and not the reason I made the purchase; it’s more of a long-term investment.

Thanks for all you do, and looking forward to learning from you and your experiences in this industry.

Dan

Listener Question #4

I have managed to make the deeds that my living mother has and have transferred them into my sister and my names.

One of the properties in Oklahoma is producing her a monthly check. She has been self-paying at a nursing home for the last ten years, and now she is running out of money, so we want to buy these mineral rights from her so the government doesn’t take them. We have not been able to get a fair market value on this property, so we are hoping to pay her $10k in total.

Do I need to hire a lawyer to buy this or can i fill out a bill of sale and then deed it into our names ? Or this there more paperwork and process outside of this ?

We do have the land description but that’s about the extent of the information.

Nicole

Listener Question #5

Hi,

I am a land owner as well as partial mineral right owner for a 140 acre piece of land. I inherited the land and minerals a little over 5 years ago. The world of oil and gas is very overwhelming. I’ve always wanted to dig in and learn about all the moving parts but I get very overwhelmed and give up as soon as I get started.

There was recently a large oil spill that occurred on an adjacent property. The oil spill did travel through my property via a creek. This prompted me to take a trip to visit the land and I am once again hoping to learn more about what goes on so I can feel knowledgeable about the process as a whole.

I’ve decided the most simple place for me to start is with understanding surface use agreements. I have a surface use agreement with a land lease oil operator. The lease agreement term is for 1 year. He pays a small flat fee each year for the lease. He has always been the one to provide the lease which I have never been comfortable with, however, my head was/is so under water with the situation that I have just trusted that he is being honest and not taking advantage. The current lease expired more than 30 days ago and I have not received a new lease in the mail. That being said, I figured that the surface use agreement would be the most logical place for me to dive in and start learning.

I just got done listening to episode 23: How to Negotiate a Surface Use Agreement but I still have so many questions. I feel so completely lost and I was wondering if one of you would be willing to answer some questions or provide some guidance so I can feel more confident about this piece of the process.

Thank you for your time, Melissa

Listener Question #6

Hello Again Matt

Really enjoy the show with Justin.

It’s been 19 months since my dad passed now and I still don’t have the Exemption Trust funded with my dad’s Texas mineral rights. I am to run the trust and pay my 90 year old stepmother the income from properties until she passes at which time they are my property.

We have significant payments in suspension now. My stepmother has worked with an attorney in CA and Midland to execute affidavit of heirship for the properties we know about through operators.(4 counties so far)

I’ve only got the documents for one County in Texas so far. They show my Stepmother’s Name and address for the applicant( using will only) and name her as the sole devisee.

Now, her attorney says she is ready to fund the trust, which I want her to do so I can start working on getting the suspended funds. Only problem is , her name is on file as owner, I don’t believe this can be changed without doing the legal work with the various counties all over again.

Am I wrong?

As you know, running a trust of this nature is a lot of work, I would be very disappointed, if after donating (free administration) years of effort to get the most out of this property only to find out her relatives claim it was her property and now its theirs.

Thank You Very Much in advance for the enlightenment you could give.

Sincerely

Erik

Listener Question #7

Hi Matt, last week I was told by a landman that we are heirs to 500 acres of mineral rights in Texas due to some old 1800’s deed documents and he wants us to sign a RATIFICATION. I am attempting to find out all that I can know about mineral rights, looking for an advocate and a lawyer. It is a lot to absorb in 1-2 weeks.

Gary

Resources Mentioned in this Episode:

Mineral Rights Education

Books

Never Split the Difference by former FBI Hostage Negotiator Chris Voss is THE book on negotiation.

How to Make Sure You are Getting Paid Correctly

Mineral Rights Research

How to Negotiate a Lease / Surface Use Agreement

What Happens if My Lease Gets Sold (or if I Signed a Lease with a Company that is not the Operator)?

North Dakota Ombudsman Program / Royalty Underpayment by Previous Operator

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