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Problems With Mineral Rights Leasing
As many people dealing with mineral rights probably knows, mineral rights leasing comes with problems and setbacks. These problems are not easily resolved either, and takes time to overcome. Nevertheless, they can still be solved and taken cared of.
One problem that both parties would have to gloss over mineral rights transactions are the legal procedures. This would include the mineral rights lease and terms of agreement. The wording of the lease agreement has to be very clear to both parties to avoid future disagreements. Problems and disagreements especially arise when the moment comes for mineral extraction. Mineral extraction has such heavy requirements like the expansive use of the land and surface, not too mention the amount of damage it can cause for the surface owner.
This is one of the main reasons why seeking legal help is needed when negotiating with a mineral rights lease. It is also advisable for both parties to have sufficient knowledge on the subject. Respect for the terms in the lease is also needed from both parties. The lease agreement should contain specific details if needed to ensure that there will be less, if not none, disputes in the future.
Legal issues aside, other problems can arise from mineral rights transactions. Damages to the land and property are the main concerns when mineral extraction is underway. It is not only during the extraction, too. Damages to the surface can appear years after the mining and extraction is complete. This would certainly be a headache for owners of fee simple estates. The effects and damages of mineral extraction can ruin the property and will become a problem for the subsequent owners of the area. Take note that the effects can appear many years later, and by this time the mining company may already be gone. No one would then be held responsible and any repairs to the damages would be a burden for the remaining owner of the property.
Aquifers and water supply can also come under fire with mineral extraction and mining. Places where underground extraction takes place are outside of the service of public water supplies. The people would have to content themselves with water wells for water. If the extraction is below the aquifer units tapped by the well, most probably the aquifer would be damaged by the extraction and the water water would drain into deeper rock units. This would lead to a temporary or permanent loss of water supply.
What is important in mineral rights leasing is that all the parties involved should understand wholly what they’re getting into. Mineral rights extraction can cause the surface owner many disadvantages, not only in the present time but also in the future. Legal representatives or lawyers should take care to research carefully and make sure their clients understand the agreement and terms.
When in the midst of negotiations, the leasing terms and agreement is what is to be focused on. Again, both parties should have legal help and should also have full knowledge of the terms. Understanding the risks and the many possibilities in the future is also part of the process. Business such as this naturally have its big problems, and while still early the parties involved should make adjustments.
Troubles in Mineral Rights Leasing
There many potential troubles when you are involved in mineral rights leasing. This is understandable as mineral rights leasing isn’t exactly a simple transaction. There are a lot of areas to cover and be clear with. Still, even if you have given your best in the negotiations and shaping of the deal, problems and arguments may still arise in the future.
One such potential problem would certainly be concerning the legal procedures. This is not surprising since mineral rights leasing involves a lot of research, corrections, and transactions in order to be completely clear to all parties involved. In this regard, the contract or mineral rights leasing agreement is very important. The wording in the contract has to be agreed upon by all parties in order to avoid future arguments. The contract will be your basis for any activities pertaining to the lease.
This is why legal help and counsel is important in mineral rights leasing. Whatever is written in the contract should be clear and concise, and it should also be satisfactory to all parties. To prevent any misunderstandings and unfair proceedings, legal counsel for each party is critical. The negotiations might be heavy and tiring, but mineral rights leasing isn’t exactly a light decision to make when you also have to consider what the other parties want to get out of the deal.
It is also important for all the people involved in the deal to have sufficient knowledge on the transactions. You should know the terms used and the clauses of the contract and be clear on the specific details entailed in the negotiations. It is crucial to educate yourself about mineral rights leasing before going into a deal on it.
Other potential problems can arise when the mineral extraction is already underway. The main problem during this time will most probably be the damages to the land and property. These damages may not appear right away, and may take years after the operation until they surface. This is a headache to the surface and property owners. If the surface owner complains about this, you can always go back to the contract and settle the dispute. The problem will be worse if the damages appears years later though, because by this time the mining company might already be gone. There would be no one to be held responsible for the damages and the surface owner will be burdened by this.
Aquifers and the water supply should also be thought over. Usually when there is mining and mineral extraction, there would be temporary or permanent loss of water supply. The aquifers might be damaged in the extraction process and the water would drain into deeper rock units.
What is most important in the mineral rights leasing is the contract. So long as you and the other parties have clearly settled your conditions on the document, the potential troubles will be minimized. Just remember that the contract will be the basis of any misunderstandings. So from the very start, in the formulation of the contract, you should have already sought legal help and made your terms clear with the other parties concerned.