What is a Dormant Rights Attorney in Ohio?
Why a Mineral Rights Attorney is Needed by a Seller in Ohio.
The selling process is complicated and can work in several ways with various percentages of rights sold. The process is far too complex to close without an attorney specializing in mineral rights.
A great variation in purchase price is standard. Unless the sale is monitored with your interests in mind, it is easy to get a far lower sale price than is either fair market value or the going rate.
Tax considerations are also a factor when negotiating the sale and structure of the sale of your mineral rights interests.
The ongoing energy boom in the United States has dramatically increased interest in preserving and terminating dormant mineral rights. The recent natural resources explosion was ignited by the development of horizontal drilling and hydraulic fracturing (fracking), both of which make it possible to extract natural gas and oil deposits that were previously inaccessible. A dormant mineral rights attorney can play an essential role in obtaining or maintaining the legal right to sell underground mineral deposits.
Mineral Resource Development
The various states have adopted dormant mineral statutes to determine ownership of underground mineral deposits. Both landowners and energy development companies stand to earn a substantial profit from the extraction of valuable mineral resources. Nevertheless, it is often the case that mineral resources are legally owned by someone other than the owner of the surface land.
Although a landowner may wish to lease the rights to develop underground mineral resources, they may be surprised to learn that the gas, oil and other mineral deposits are legally controlled by someone else. In some cases, it simply isn’t possible to determine who actually owns the natural resources underlying a parcel of land. There may be no record of the mineral resources having ever been developed, or mineral production may have ended some time ago.
Even if the mineral and surface property rights were previously severed, ownership of the mineral estate may have been abandoned under state law. When dormant mineral rights are placed in jeopardy, the services of a dormant mineral rights lawyer may prove to be invaluable.
Dormant Mineral Statutes
A typical dormant mineral statute allows a landowner to reunite surface and mineral estate rights if the mineral resources have not been developed for a specified period of time. Dormant mineral rights statutes also protect the legal interests of mineral estate owners. A landowner must meet the legal requirements for mineral estate rights to be declared legally abandoned. Customarily, legal notice and an affidavit of abandonment are among the procedures that must be completed. The requirements of the dormant mineral statute must be strictly observed.
Mineral Estate Abandonment
A dormant mineral rights attorney can also help a mineral estate owner maintain the right to sell or lease underground mineral resources. A mineral rights owner can respond to a surface estate owner’s attempt to have existing mineral rights ownership abandoned by filing a claim to preserve their legal interest in the mineral resources. Moreover, it isn’t necessary for a standing mineral estate owner to wait for the surface landowner to file for abandonment before filing a claim.