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    • Home
    • About
    • NEWS AND UPDATES
    • Contact
    • Royalty Auditing
    • Landowner Education
    • Mineral Rights 101
    • Oil and Gas Leasing FAQs
    • FAQ's
    • Belmont Mineral Rights
    • Carroll Mineral Rights
    • Columbiana Mineral Rights
    • Guernsey Mineral Rights
    • Jefferson Mineral Rights
    • Mahoning Mineral Rights
    • Monroe Mineral Rights
    • Noble Mineral Rights
    • Harrison Mineral Rights
    • Stark Mineral Rights
    • Tuscarawas Mineral Rights
  • Home
  • About
  • NEWS AND UPDATES
  • Contact
  • Royalty Auditing
  • Landowner Education
  • Mineral Rights 101
  • Oil and Gas Leasing FAQs
  • FAQ's
  • Belmont Mineral Rights
  • Carroll Mineral Rights
  • Columbiana Mineral Rights
  • Guernsey Mineral Rights
  • Jefferson Mineral Rights
  • Mahoning Mineral Rights
  • Monroe Mineral Rights
  • Noble Mineral Rights
  • Harrison Mineral Rights
  • Stark Mineral Rights
  • Tuscarawas Mineral Rights
Ohio Energy Advocates

Advocating for Ohio Landowners

Advocating for Ohio LandownersAdvocating for Ohio Landowners

Mineral Rights 101 – Understanding Rights as a Landowner

What Are Mineral Rights?

  Mineral rights refer to the ownership of oil, gas, and other minerals beneath the surface of your land. These rights can be:

  • Unified (surface and minerals owned together), or
  • Severed (surface and minerals owned by different parties)

Mineral rights can be sold, inherited, leased, or reserved separately from the surface 

Surface Rights vs. Mineral Rights

 Understanding the difference is essential:

  • Surface Rights: Control the land you live on - your home, fields, timber, and water.
  • Mineral Rights: Control the resources beneath the land.


In Ohio, mineral rights are dominant, meaning a mineral owner or operator may access the surface to develop the minerals, unless your lease includes protections 

Common Issues Landowners Encounter Severed Mineral Ownership

 You may own the surface but not the minerals. This can happen due to:

  • Old reservations in deeds
  • Inheritance splits
  • Past sales of mineral interests

Fractional Ownership

 Mineral rights often become divided among many heirs over generations, creating:

  • Multiple owners
  • Conflicting claims
  • Delays in leasing or royalty payments

Dormant Mineral Act Questions

 Ohio’s Dormant Mineral Act allows surface owners to reclaim abandoned mineral rights under certain conditions. This often requires:

  • Title research
  • Legal filings
  • Notice to heirs or prior owners

Leasing Basics

  Before signing any lease, landowners should understand:

Bonus Payments

Upfront money paid for signing a lease. This varies widely by:

  • Tract Sizes
  • Location
  • Operator and Non-Operator interest
  • Market conditions

Royalty Percentage

   Your share of production revenue. Key considerations:

  • Gross vs. net royalties
  • Post-production deductions
  • Market value vs. proceeds pricing

Primary and Secondary Terms

   

  • Primary Term: Initial lease period (often 3–5 years)
  • Secondary Term: Extends as long as the well produces in “paying quantities”

Paying Quantities

A legal standard determining whether a lease remains active. The definition varies by:

  • State law
  • Case law
  • Court interpretation

Red Flags to Watch For

     Defective or Misleading Royalty Clauses

Some leases appear to limit deductions but contain loopholes such as:

  • “Except for those incurred by unaffiliated third parties”

This language can eliminate your protections and reduce royalties by 50% or more.

Arms-Length Sale Clause

Prevents operators from selling gas to a shell company at an artificially low price to reduce your royalty.

Audit Clause

Allows landowners to review the operator’s financial records to verify royalty accuracy.

Protecting Your Property

A strong lease should include protections for:

  • Water quality and testing
  • Surface use and access
  • Road maintenance
  • Setbacks from homes and structures
  • Restoration of land after operations

  

Without these protections, landowners may face:

  • Water contamination risks
  • Property damage
  • Reduced real estate value 

Title Research and Curative Work

Title issues can delay or prevent leasing and royalty payments. Common curative actions include:

  • Affidavits of abandonment or  preservation
  • Probate filings
  • Heirship documentation
  • Quiet title actions

Professional title research helps ensure:

  • Clear ownership
  • Accurate royalty division
  • Protection against future disputes  

When to Seek Help

If you have questions about mineral ownership, leasing, or royalty issues, OEA can connect you with:

  • Experienced oil and gas attorneys
  • Title professionals
  • Royalty audit specialists

Our goal is to help you understand your rights and protect your family’s interests. 


 

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