Can a Surface Owner Prevent Assignment of Oil and Gas Rights?
Full Question:
Answer:
The answer will depend on the terms of the contracts and deeds involved. In some cases, a deed restriction will prohibit certain activities or uses of land. With regard to an oil and gas lease, a contract between mineral owner, otherwise known as the lessor and a company or working interest owner, otherwise known as the lessee in which the lessor grants the lessee the right to explore, drill and produce oil, gas and other minerals for a specified primary term and as long thereafter as oil, gas or other minerals are being produced in paying quantities. This lease gives the lessee a working interest. The oil and gas lease is granted in exchange for royalty payments to the lessor. In some cases, a lease will allow an assignment of those rights. If the surface owner is has no interest in the oil and gas rights, and is not a party to the lease, it will depend on whether the lease states the rights may be assigned or not. We suggest you contact a local attorney who can review all the facts and documents involved.
Adverse possession is a means by which someone may acquire title to the land of another through certain acts over a defined period of time. In order to establish adverse possession, the possession must be actual, open, continuous, hostile, exclusive, and be accompanied by an intent to hold adversely and in derogation of, and not in conformity with, the right of the true owner.
Mineral estates, may be adversely possessed by various statutes of limitations. However, for that to occur, there typically must be actual possession of the minerals in place, or if the land is vacant and unoccupied, taxes must be paid under color of title for 7 successive years. In the case of oil and gas, actual possession means there must be drilling and production. When production of hydrocarbons ceases, lessors must sue within the statutory period to recover real property held by others in peaceable and adverse possession. Title to minerals beneath the surface is not lost by nonuse nor by adverse occupancy of surface owner under the same claim of title, and the adverse possession statute can only be set in motion by an adverse use of mineral rights, persisted in and continued for the statutory period.