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1.)mineral Rights Transfered On Repo? 2.) Surface Protection

Discuss anything to do with property law - buying, selling property

1.)mineral Rights Transfered On Repo? 2.) Surface Protection

Postby Gualterio » Fri Dec 02, 2016 9:34 pm

Good evening i have 2 question i hope you can help me with.

1)Whats happens to mineral rights when a property is repossessed? This property in Nacogdoches County J De Los S Coy/A-22 and has been repossessed 2 times in the last 10 years by the VLB. However from my research some how a third party has managed to hold on to 100% of the mineral rights after selling the property to the VLB on 1/1989 and then going back and paying $20,000 to the VLB on 3/1989 for the mineral rights before going to any sort of public auction or process AFTER the selling said property. All these transactions clearly stated on them in my findings "title to said interest not examined subsequent to date of aforesaid instrument" I am confused as to how these rights were sold/transferred when no clear ownership or documents were ever verified. I wont even touch the "sweetheart" deal the VLB gave to one person with public VLB funding involved from said property transaction.

2) Now this brings me to where i come in as "surface owner" from 4/2009 purchased via auction on repo from the VLB unfortunately not aware of the mineral situation at the time.(100% my fault for not completion of due diligence) After finally finding all the documents the most "current" gas/oil lease has expired on July 2010 after 3 years. There is a provision in it for a 2 year extension but as of this writing it has not been filed at the court house. However EOG Resources Inc.(last current lessee)has already surveyed 3 tracts in August 2010 and recently leveled the tract next to me for what looks like a drilling/storage site. This was preceding a public filing for the "Kinney Unit Well #1 well" on March 21,2010 in the local paper. Again there is nothing out there yet as of October 25th on that new site. Unfortunately my property lies in the middle of the tracts EOG has surveyed. My main concern is simple how can i protect my 19 acres of mature timber from environmental impact/damage when i have not been included in any of these said leases. Do i have to be notified of a new lease going into effect? This land has appreciated significantly and i know gas production is not going to just go away at this point in the process so i am not so sure on how to proceed or even how to start.

Thank you for your time.
Gualterio
 
Posts: 41
Joined: Thu Mar 13, 2014 11:44 pm

1.)mineral Rights Transfered On Repo? 2.) Surface Protection

Postby Greyson » Sat Dec 03, 2016 4:25 pm

Good evening i have 2 question i hope you can help me with.

1)Whats happens to mineral rights when a property is repossessed? This property in Nacogdoches County J De Los S Coy/A-22 and has been repossessed 2 times in the last 10 years by the VLB. However from my research some how a third party has managed to hold on to 100% of the mineral rights after selling the property to the VLB on 1/1989 and then going back and paying $20,000 to the VLB on 3/1989 for the mineral rights before going to any sort of public auction or process AFTER the selling said property. All these transactions clearly stated on them in my findings "title to said interest not examined subsequent to date of aforesaid instrument" I am confused as to how these rights were sold/transferred when no clear ownership or documents were ever verified. I wont even touch the "sweetheart" deal the VLB gave to one person with public VLB funding involved from said property transaction.

2) Now this brings me to where i come in as "surface owner" from 4/2009 purchased via auction on repo from the VLB unfortunately not aware of the mineral situation at the time.(100% my fault for not completion of due diligence) After finally finding all the documents the most "current" gas/oil lease has expired on July 2010 after 3 years. There is a provision in it for a 2 year extension but as of this writing it has not been filed at the court house. However EOG Resources Inc.(last current lessee)has already surveyed 3 tracts in August 2010 and recently leveled the tract next to me for what looks like a drilling/storage site. This was preceding a public filing for the "Kinney Unit Well #1 well" on March 21,2010 in the local paper. Again there is nothing out there yet as of October 25th on that new site. Unfortunately my property lies in the middle of the tracts EOG has surveyed. My main concern is simple how can i protect my 19 acres of mature timber from environmental impact/damage when i have not been included in any of these said leases. Do i have to be notified of a new lease going into effect? This land has appreciated significantly and i know gas production is not going to just go away at this point in the process so i am not so sure on how to proceed or even how to start.

Thank you for your time.
Greyson
 
Posts: 51
Joined: Sat Feb 15, 2014 8:30 pm

1.)mineral Rights Transfered On Repo? 2.) Surface Protection

Postby Freeland » Sun Dec 04, 2016 3:33 am

Upon foreclosure, the VLB, owner of minerals and surface was free to do whatever they wanted with what they owned. You would need to read the VLB agreement, as the VLB often retains one half of the minerals as additional collateral until the loan is paid.

You bought land subject to a prior mineral conveyance. The mineral rights prime your surface rights and the mineral owner/s havr the right of ingress and egress on to those lands to explore for and develop their mineral interests.

You will never be notified about the activities concerning the minerals, unless a company needs access to the lands and then they will notify you they're coming. For some reason when I don't agree with people's incorrect assumptions, they discredit my knowledge. If they were serious they would hire a lawyer.
Freeland
 
Posts: 49
Joined: Sat Feb 15, 2014 8:24 pm


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