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A Few Thoughts from Kimberly Moss

Mineral Ownership 101

Posted by Kimberly D. Moss | Mar 04, 2013 | 0 Comments

Texas is a mineral-rich state. Beneath our feet lies liquid gold in the form of oil and natural gas. The recent political and economic need for domestic energy production has caused a change in the landscape. Now people who have owned their homes, farm land, and undeveloped lots are receiving phone calls, letters, and sometimes notes left on their front doors about XYZ Oil and Gas' interest in their property. Most do not know how to respond to these messages. Many are skeptical due to the unsolicited nature of the contacts. Others are curious when they read they may be paid $100 simply to fill out a form and return it. If this situation sounds even remotely familiar, please keep reading.

First, if you have received any of these communications, they are usually legitimate. You can sigh a breath of relief. For once, a strange company is not trying to con you. In fact, it wants to purchase from you. The company is offering an oil and gas lease that allows XYZ to enter your property to search for oil, natural gas, and other hydrocarbons. In exchange for your signature on the lease, the company is willing to pay you a lease bonus, a shut-in payment, and a royalty payment in the event XYZ finds valuable oil, gas, or minerals beneath your property. You still own your property during the entire process. XYZ simply needs your consent to use your property for a specific purpose during the term of the lease.

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Second, unless you work in the oil and gas business and are familiar with the terms of the lease, do not sign it. Let me repeat that: do not sign the lease if you don't know what it means. Nothing is more foolish than signing a binding legal document without a basic understanding of its effects. You probably didn't blindly sign your mortgage documents. Don't blindly sign an oil and gas lease.

Third, the good news is that if you have been presented with an oil and gas lease, you have been given two valuable opportunities:

1. The opportunity to make money off of property you already own.

2. The opportunity to learn more about property ownership and some of its attendant benefits.

I bet it had never occurred to you that you own more than the surface of the property. You own much more than that and should be educated about what that means in terms of how you conduct your affairs and how you protect your financial interest and that of your family members.

For more information about how this process works and how to protect the value of your property, please contact The Law Office of Kimberly D. Moss at (713) 574-8626. Our phones are answered 24/7 by a live person waiting to hear from you. You won't regret the call.

About the Author

Kimberly D. Moss

Attorney and Counselor at Law (713) 574-8626 Kimberly Moss is a Supreme Court of Texas licensed lawyer and Dallas native who went into the practice of law with the intention of working for herself and bringing value to the community she serves. Prior to law school, she worked for Experian Inform...


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