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8 Cards in this Set
- Front
- Back
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What does MI consist of?
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Fee simple ownership of O&G in place under teh properly
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What exclusive rights with MI?
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Search for, develop and produce O&G
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What other rights?
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1. Use surface as is reasonably necessary to develop minerals.
2. Right to grant O&G leases (Executive right) 3. Right to develop O&G himself NO DUTY to develop |
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What does MI owner get if they lease?
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Royalty - fractional share of O&G produced cost-free.
Bonus - upfront payment for signing usually based on acres Delay Rentals - paid annually to defer drilling one more year during primary term. |
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What is Duhig doctrine?
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When 3 party chain of conveyances reults in conveyance of more than 100% of MI.
Tx courts determines whose title will fail. Doctrine says GRANTOR will bear the loss. |
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What is the SI?
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All that remains in bundle of rights after MI severed
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What is SI subject to?
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implied easement of surface use by the dominant MI owner.
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What is the accommodation doctrine?
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This is portection for the surface estate - MI must accomodate surface owner's EXISITING use of land if MI has rznble alternatives.
NEED: Existing use by Surface owner MI has reasonable alternative method which is less destructive Reasonable alternative available on leased tract. |
