How would selling my minerals affect my family members that also own interests?
August 15, 2019
|By admin
Mineral interests are typically held as tenants in common as “undivided interests,” meaning each party is free to will, sell, or mortgage their interest without affecting one another.
>>Let’s use a quick example to clarify this “undivided interest” language before we confuse you too much. Let’s say you own 25% of the S/2 of a 640-acre section. The S/2 would not be then divided into 4 smaller pieces, rather you would own 25% of all the minerals under that S/2.
This is why oil and gas companies must lease from all parties, and each party is free to negotiate their own lease form and royalty rates. Selling your minerals will not impact the remaining undivided interests in a given tract.