Mineral Rights WV

[jimmler]

What is the name of your state? West Virginia

I have a friend that has received a request for permission to do a geological survey on their property to look for natural gas. The Geological Company has sent an agreement for them to sign.

In the disclosure form they received at closing it says "There is a reservation of the minerals, gas and oil underlying the property. This reservation does not include surface mining rights."

I have advised them to seek a real estate attorney to review the document before they sign. I think they should have a title search done on the property to know what rights were actually reserved, and how this could affect the property value, and future building rights on the property. I did not see a title report in their closing papers.

What other things should they look out for? Is there anything special they should ask the attorney to make sure they are getting the right legal advice?

Thanks,
jimmler

[HomeGuru]

Originally Posted by jimmler

What is the name of your state? West Virginia

I have a friend that has received a request for permission to do a geological survey on their property to look for natural gas. The Geological Company has sent an agreement for them to sign.

In the disclosure form they received at closing it says "There is a reservation of the minerals, gas and oil underlying the property. This reservation does not include surface mining rights."

I have advised them to seek a real estate attorney to review the document before they sign. I think they should have a title search done on the property to know what rights were actually reserved, and how this could affect the property value, and future building rights on the property. I did not see a title report in their closing papers.

What other things should they look out for? Is there anything special they should ask the attorney to make sure they are getting the right legal advice?

Thanks,
jimmler

**A: interesting. Is this friend the Seller that bought the property and got the disclosure statement and is now either selling or just trying to agree to the natural gas investigation?
Please clarify.

[jimmler]

Originally Posted by HomeGuru

**A: interesting. Is this friend the Seller that bought the property and got the disclosure statement and is now either selling or just trying to agree to the natural gas investigation?
Please clarify.

The friend is the buyer that bought the property a few years ago (and got the disclosure statement at that time) and is trying to agree to the natural gas investigation. He is not selling the property. He just wants to protect his interests.

jimmler

[HomeGuru]

Originally Posted by jimmler

The friend is the buyer that bought the property a few years ago (and got the disclosure statement at that time) and is trying to agree to the natural gas investigation. He is not selling the property. He just wants to protect his interests.

jimmler

**A: ok, then you are correct. He should have completed due diligence by requesting a title report and contacting those in favor of the gas and mineral rights to see exactly what rights were reserved, what other conditions may be applicable such as access easements, right to investigate and mine, restrictions on building improvements ie. underground well, utilities and on ground buildings, rights to transferinterest, time period etc.

[jimmler]

Originally Posted by HomeGuru

**A: ok, then you are correct. He should have completed due diligence by reqesting a title report and contacting those in favor of the gas and mineral rights to see exactly what rights were reserved, what other conditions may be applicable such as access easements, right to investigate and mine, restrictions on building improvements ie. underground well, utilities and on ground buildings, rights to transferinterest, time period etc.

Thanks HG, I will let him know! I know it is a little late, but better late than never in this case.
He will get the lawyer he should have hired before he bought the property.

jimmler

[HomeGuru]

Originally Posted by jimmler

Thanks HG, I will let him know! I know it is a little late, but better late than never in this case.
He will get the lawyer he should have hired before he bought the property.

jimmler

**A: you are welcome and keep on this website. We need your expertise in your area.

[jimmler]

Originally Posted by HomeGuru

**A: you are welcome and keep on this website. We need your expertise in your area.

I shall try, Thanks!

[HomeGuru]

Originally Posted by jimmler

I shall try, Thanks!

**A: thanks.