Mineral Rights Question?

[thvigil11]

As always, thanks for all the great advice.

I hope I didn't just open a can of worms (like the constant ATF letters). I called assessor and was referred a couple of times and now the Colorado department of water resources is trying to figure out exactly what that pond is. This could get interesting.

Better to get that sorted out now at least. Water issues suck in this part of the world. Been fighting wars over it for a long time.

[Lars]

A friend of mine just sold his place in Weld county and retained the mineral rights. If the oil company ever does come in to that property, the new owner will receive a check ONLY for any access from the surface, while my friend will get royalties for any mineral that come from under ground. Like stated before, I wouldn't bat an eye over mineral rights these days. Make sure the water situation is covered above all else. Good luck with the purchase.

[th3w01f]

So do smaller lots, <35 acres usually come with water rights? I've only seen water rights on larger properties and we've looked at a bunch of ~5 acre properties all along Castle Rock and Sedalia and non appeared to have water rights.

[Martinjmpr]

So do smaller lots, <35 acres usually come with water rights? I've only seen water rights on larger properties and we've looked at a bunch of ~5 acre properties all along Castle Rock and Sedalia and non appeared to have water rights.

I don't think so but I have to admit I never studied water law so I don't know. Unless there's a river or stream on the property I can't imagine that it would be much of an issue.

[CO Hugh]

I don't think so but I have to admit I never studied water law so I don't know. Unless there's a river or stream on the property I can't imagine that it would be much of an issue.

You need specific permission to hook up to a utility, a tap, or drill a well. The state engineer can help and check with the neighbors. The magic lot size is 35 acres for a lot of issues.

[Great-Kazoo]

1st thing is consult an atty who deals with this and not the internet

2nd
If you don't own mineral rights they can park a well 50yds off your back door and you can't do squat about it. Complete with a fire tube if required.

The O&G company can drill as close as the contract says they can & local (city, cty state) laws for said distance applies. Up here you see then an easy 50' from homes. Even if you did own them where they decide to drill is up to them, again following local law.

The owner probably received (as everyone in this area) a few letters / contracts saying they would be paid $XX for lease rights. They are probably hoping said letter or rights has a big payday down the road.

For us in a residential area they would come in from a drill site maybe 1mi away and angle? drill for access. I looked in to signing the contract for $$ and it's a real in depth deal once you sign regarding rights, collecting for damage etc.

OT: we have a non-potable well, one of the few in town. If we signed one of the O&G contracts we could list the house saying WATER & MINERAL RIGHTS INCL. It sounds silly since we're in an older residential area. BUT those extra perks in a sale can add $$ for the seller

[th3w01f]

But the internet is free. You just made the prospect of buying just about any house on land somewhat daunting.

I get what you're saying about a lawyer but I'm guessing that means I would need someone on retainer to review every property we might be interested in since, like water rights, none of smaller lots we've looked at have come with mineral rights.

Anyone know if there's a bunch of drilling in the Elizabeth area? The area is zoned as a residential subdivision but I'm not sure if that means anything or if they could just go into the middle of the city and drill as long as they met the required distances.

1st thing is consult an atty who deals with this and not the internet

2nd
If you don't own mineral rights they can park a well 50yds off your back door and you can't do squat about it. Complete with a fire tube if required.

The O&G company can drill as close as the contract says they can & local (city, cty state) laws for said distance applies. Up here you see then an easy 50' from homes. Even if you did own them where they decide to drill is up to them, again following local law.

The owner probably received (as everyone in this area) a few letters / contracts saying they would be paid $XX for lease rights. They are probably hoping said letter or rights has a big payday down the road.

For us in a residential area they would come in from a drill site maybe 1mi away and angle? drill for access. I looked in to signing the contract for $$ and it's a real in depth deal once you sign regarding rights, collecting for damage etc.

OT: we have a non-potable well, one of the few in town. If we signed one of the O&G contracts we could list the house saying WATER & MINERAL RIGHTS INCL. It sounds silly since we're in an older residential area. BUT those extra perks in a sale can add $$ for the seller

[Great-Kazoo]

But the internet is free. You just made the prospect of buying just about any house on land somewhat daunting.

I get what you're saying about a lawyer but I'm guessing that means I would need someone on retainer to review every property we might be interested in since, like water rights, none of smaller lots we've looked at have come with mineral rights.

Anyone know if there's a bunch of drilling in the Elizabeth area? The area is zoned as a residential subdivision ( up here the derricks are in between housing / platted lots) but I'm not sure if that means anything or if they could just go into the middle of the city and drill as long as they met the required distances (Yes) .

You're over thinking and complicating the buying issue. Get the seller AND realtor, to explain exactly what the mineral rights you do not get entail, IF you buy the property. It's the realtor's responsibility to have disclousre on property thay are listing.
Make sure what he says is in writing and you have an O&G attorney simplify it for you. They run $150-275 an hour, no free consultation. That money laid out could solve issues down the road, IF you look out one morning and see them putting up berms next to your shop.

The internet is not the place to think what your next step or options are. Ideas & suggestions, yes. Legal advice that protects you, not w/out said advice possibly putting them in a jam.

but, but an attorney on line said i could.


DISCLOUSRE: I'M NOT AN ATTY, REALTOR, OR ONE SELLING THE PROPERTY. JUST someone who has run in to issues like this before. It was worth the money spent on an attorney BEFORE hand. YMMV.

[CO Hugh]

You're over thinking and complicating the buying issue. Get the seller AND realtor, to explain exactly what the mineral rights you do not get entail, IF you buy the property. It's the realtor's responsibility to have disclousre on property thay are listing.
Make sure what he says is in writing and you have an O&G attorney simplify it for you. They run $150-275 an hour, no free consultation. That money laid out could solve issues down the road, IF you look out one morning and see them putting up berms next to your shop.

The internet is not the place to think what your next step or options are. Ideas & suggestions, yes. Legal advice that protects you, not w/out said advice possibly putting them in a jam.

but, but an attorney on line said i could.


DISCLOUSRE: I'M NOT AN ATTY, REALTOR, OR ONE SELLING THE PROPERTY. JUST someone who has run in to issues like this before. It was worth the money spent on an attorney BEFORE hand. YMMV.

I echo this. Also I would never recommend agreeing to the seller retaining any rights without knowing specifically what those rights are. Additionally, if it is the seller with the rights you should negotiate the terms for access to the rights.

I think you should retain the rights. A weaselly secret is that though the contract discusses the rights, the deed may not, because title companies don't prepare deeds like that, then he would retain the rights.

See a lawyer. I practice in real estate but not O&G.

[th3w01f]

I agree to a certain extent but I think it's others that are over thinking it. The wording seemed pretty clear as far as what mineral rights are being transferred (none). I was able to verity that the seller doesn't own the rights, hence they can't convey them to me. Would you really track down the actual owner of mineral rights to any property you're buying? Not saying that's a bad thing but it seems like overkill.

Having an O&G attorney involved in every home purchase transaction seems like overkill but that's just me.... and I'm pretty paranoid to start with.