Mineral Rights ~ Natural Gas in Indiana

Are there any oil or gas wells in the vicinity of their property? Do they have a rocking horse pumper (note size of horse and of weights) or just a well head?

Has anyone been approached to make an offer for leasing their rights?

Can you see a drilling rig from the property?

Those are the three degrees of info that would indicate current activity in the area.

Start asking the neighbors what they know and what their deal is.

0.02

First, they need to find out whether or not they actually OWN said Mineral Rights.

Severed Mineral Rights are fairly common out here.

This includes both severed Private estates (Private/Private), AND about 58,000,000 acres of Federal Minerals/Private Surface (see Stock Raising Homestead Act of 1916).

I would suspect that most of Indiana would be a Private/Private situation (assuming the estates have been severed in the past). But one can not assume anything.

You (they) will need an ab initio Title Abstract for their property, and someone who can interpret it for them.

I would send them to an attorney who specializes in Mineral Estates (there are plenty of them in these parts).

It will NOT be cheap...

Loyal

Even assuming they have NG under their property, is there a pipeline anywhere close that they can hook it up to to get it to market? I know that in the North-West part of my county there has been some gas found but no way to get it to market.

In Oklahoma if there was the slightest chance of a recoverable gas field in their area someone would have already approached them with a standard 2/5 royalty lease agreement and a check.

But then again, if they've got some inside info...who knows? All Jed Clampett was doin' was "shootin' at some food..."

In PA, if you only have surface, you're SOL. The leaseholder can pretty much do what they want, subject to state/local ordinance

I agree with most the others. The first step is to ascertain that they actually have the mineral rights. The last place I lived, virtually no one owned their own mineral rights on their property. There were natural gas wells all over the place. Where we lived, the well water tasted and smelled like gas. Living next to a well, makes the air stink and can be noisy at times.

Be careful if a gas company wants to come on the land, and do everything you can to keep their wells away from the house. If they (the property owners) own the mineral rights, I would advise they hold on to them and be careful not to give them up unless they are well compensated, and they might want to only transfer the rights to parts of the property that won't affect their home. These gas guys will tell you there is no problem but their interest is in extracting gas, and not preserving your health.

If they can make absolutely certain they have gas, before they proceed, I imagine the mineral rights value will increase a lot.

Reminds me of a bible verse

I can't remember if it's in 1st. or 2nd. Condominiums:

"The meek shall inherit the earth; less the mineral rights."

As always, many thanks to all!

I have 8.5 acres over Marcellus Shale. Unfortunately, I live in a large suburb of Pittsburgh, and I can't see them drilling near me anytime soon due to opposition (from people with no mineral rights or typical 1/4 to 1/2 acre lots). There is vacant land near me large enough for a pad, and then I am within range of horizontal drilling. But probably won't happen for many years, if ever. If I was just a mile or two away (next county), I would probably already have an agreement.

I researched the deeds all the way back to the first grant from Executive Council of PA in 1784. I found a deed that sold rights to the Pittsburgh Coal Seam (in 1895). Since it specifically mentions that particular seam, my opinion is that I own rights to all the other minerals, including gas and oil that is NOT in that particular seam.

Of course, i am not a lawyer (but my daughter will be!).