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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 102601
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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We have been contacted by an attorney representing an oil company.

Customer Question

We have been contacted by an attorney representing an oil company. Evidently we are the heirs to a small percentage of mineral rights in texas. The attorney wants us to sign a lease he has prepared. Article 1 of the lease states:
"1. Lessor, in consideration of Ten Dollars ($10.00) and other valuable consideration, receipt of which is hereby acknowledged, and of the covenants and agreements of lessee hereinafter contained, does hereby grant, lease and let unto lessee the land covered hereby for the purposes and with the exclusive right of exploring, drilling, mining and operating for, producing and owning oil, gas, sulphur and all other minerals (whether or not similar to those mentioned), together with the right to make surveys on said land, lay pipe lines, establish and utilize facilities for surface or subsurface disposal of salt water, construct roads and bridges, dig canals, build tanks, power stations, telephone lines, employee houses and other structures on said land, necessary or useful in lessee's operations in exploring, drilling for, producing, treating, storing and transporting minerals produced from the land covered hereby or any other land adjacent thereto."
We do not own the land coinciding with the mineral rights – and have told the attorney. We don't know how we can grant him surface right privileges and can we be sued by either his client or the land owner for misrepresenting that we are in a position to grant them these privileges?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Ely replied 2 years ago.
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can we be sued by either his client or the land owner for misrepresenting that we are in a position to grant them these privileges?
Yes.
It is best to MAKE SURE one has the right to grant such rights. If not, then one can be:
1) SUED BY THE PARTY THAT DOES HAVE THAT RIGHT for fraud, nuisance, trespass, and other such actions; and
2) SUED BY THE OIL COMPANY for fraud, breach of contract, and related actions.
As such, it is best to confirm ownership and right to do this before signing anything.
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