News
Understanding mineral rights and your farm
An Indiana farmer says the issue of mineral rights is becoming increasingly more important to farmers.
Mark Seib farms in southwest Indiana and says companies are approaching landowners more frequently about mineral extraction and farmers need to fully understand the lease agreements. “You also need to discuss if they do find anything where do tank batteries go, where roads and lease roads go,” he says. “Also they need to make sure they are the least invasive for the so it doesn’t interrupt farming practices.”
He tells Brownfield some land purchases become even more complex when a purchase is made with “severed rights” – or a situation where the owner of the property rights for the surface of the ground are not the same as the owner of the mineral rights below the ground.
Seib says IF the owner of the mineral rights eventually decides to lease them it could restrict the rights of the landowner. “That’s something we feel is not right,” he says. “We want to make sure farmers are aware of the situation so they are up front with the current mineral rights owners and that they work hand-in-hand with each other to make sure that the surface is protected and everybody is in a workable situation.”
Current mineral rights extraction contracts mainly pertain to crude oil, natural gas, and even coal, but Seib says water could be an issue in in the future. “We see that out west and we feel that all the minerals that are in the ground are of some value,” he says. “You need to make sure you’re protected.”
The Indiana Farm Bureau is hosting a mineral rights seminar August 20th, in Evansville to help landowners look at regulations and how to protect personal rights.
AUDIO: Mark Seib, Indiana
We deal with this issue all the time here in Colorado as we are a split estate state. When a company comes to talk leasing and has an agreement the best advice that can be given is “CONSULT YOUR ATTORNEY”.