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Should I be concerned about buying a piece of property in upstate NY without mineral rights?

Personal Finance & Money Asked on June 20, 2021

I’m about to go into contract on a piece of property in Delaware county NY. My lawyer raised a red flag in that the contract stipulated that the owner may not own the mineral rights to the property. The property is only 5 acres and I don’t really care much about the mineral rights except that, from what I understand, at the moment fracking is banned in the NY watershed, but only by executive and not legislative action, so a new government could change that. I just want to make sure that I’m not going to end up with some fracking rig on my property some day. Is this typical? Should I be concerned about not owning the mineral rights?

2 Answers

You'll want to find out who is retaining the mineral rights to the property in question and if possible, what the likelihood of them needing your property for a surface operation would by (if they already have a drilling pad on adjacent property then they may not ever need to put one on yours).

When purchasing property, it is quite possible that the current owner can't sell you the mineral rights because they never owned them in the first place (i.e. they were already sold off to an oil & gas company by a previous owner).

It's unlikely that an oil & gas company would try to build a surface operation on your property without first consulting you and trying to come to some sort of amicable agreement for the disturbance that would be caused. Indeed, there may already be clauses in the mineral rights agreement that protect you from surface operations to some extent.

There is a lot of useful information here. Some excerpts for ease of reference:

A task known as running title (the mineral title) is the only sure way of determining ownership with any measure of authority. By having a qualified person run (ie, examine) title, you may determine whether or not the mineral rights have been severed through a prior mineral conveyance.

A typical footprint needed for drilling, completion, and subsequent production is generally in the 3 to 10 acre range.

The following are samples of different types of surface damage clauses which could be added to a lease (provided they are appropriate for a specific situation):

  • No Surface Operations
  • Surface Damage Payment
  • Location approval
  • No Drilling Within XXX Feet
  • Water Related Clauses
  • Land Reclamation

see the article for more details of each of these clauses.

Correct answer by CactusCake on June 20, 2021

No entity except the state, county, or town, can build anything on your property without your consent. I have no idea what the NY watershed is; however, you can find if there is any aquifer under the land. And it should be possible to find if there is any oil /gas potential on the "net". If there were any fracking on nearby land, I doubt you would know it unless you read about it.

Answered by blacksmith37 on June 20, 2021

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