Full question:
Can an owner of the surface rights of real property prevent a different owner of the oil and gas rights from leasing the oil and gas rights? I am asking the above question relevant to oil and gas interests in Noble county, Ohio
- Category: Oil Gas and Minerals
- Date:
- State: Florida
Answer:
The ability of a surface rights owner to prevent a different owner of the oil and gas rights from leasing those rights depends on the specific terms of the contracts and deeds involved. Generally, a deed may include restrictions on land use. An oil and gas lease is a contract where the mineral owner (lessor) grants a company or working interest owner (lessee) the right to explore, drill, and produce oil and gas for a specified period and as long as production continues in paying quantities. The lease typically includes royalty payments to the lessor and may allow for assignment of rights.
If the surface owner has no interest in the oil and gas rights and is not a party to the lease, their ability to block leasing will depend on whether the lease allows for assignment. It is advisable to consult a local attorney who can review the specific facts and documents involved.
Additionally, adverse possession is a legal method through which someone can acquire title to another's land after certain conditions are met over a defined period. For mineral estates, adverse possession requires actual possession of the minerals or payment of taxes for seven consecutive years if the land is vacant. In the case of oil and gas, actual possession means there must be drilling and production. If production ceases, lessors must take legal action within the statutory period to recover property held by others through adverse possession. Title to minerals is not lost by nonuse or by adverse occupancy of the surface owner under the same claim of title, and adverse possession can only be initiated by an adverse use of mineral rights maintained for the statutory period.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.