Deed Preparation Involving Oil & Gas Rights
The Pennsylvania Association of Realtors (PAR) Standard Agreement For The Sale of Real Estate now provides an Oil, Gas and Mineral Rights Addendum addressing the issues of examination, exception and/or reservation of oil & gas rights. Buyers have the option via this addendum to conduct an oil, gas and mineral search to determine the “marketability” of those subsurface Interests as well as the surface. Sellers previous to the Agreement of Sale with the buyers may have severed (sold) the mineral interests to a third party, in this situation the seller would “except” the oil, gas and mineral interests therefore Nottransferring with the surface the subsurface interests. ***CAUTION*** Oil, Gas and Mineral interests that are under agreement for lease can be conveyed along with the rights in the lease to the buyer. Sellers may also “reserve” the oil, gas and mineral interests, whereby, Not conveying those with the surface interests.
***CAUTION*** The severance of the oil, gas and mineral interests owned by the Seller, if negotiated or contained in the deed may give the seller or third party agent, the right to come unto the surface for future development.