Legal Question in Real Estate Law in Kentucky

Re: Oil leases

I can give you some general information but you may need to seek personal "one-on-one" consultation with an experienced real estate/mineral rights attorney. In Kentucky, the mineral estate can be severed from the surface estate. This can be done by a direct conveyance of the mineral rights (or certain mineral rights) by deed or reserved when the surface is conveyed. When the mineral title has been severed from the surface title, the "surface owner" is considered to hold the mineral estate in "trust" for the mineral owner. You, as the surface owner, would have no right to exercise any control over the mineral estate. You cannot lease it-you do not own it. A complete title examination (not the one the bank has done for a mortgage) should be conducted to determine the state of the mineral title. Again, this is the time to consult local counsel. You do not have the skills to do it. A lot of real estate professionals do not have the experience to do it or at least interpret the information that they find. I also alert you to the fact that there are a lot of regulations that govern the removal of minerals which may make the mineral ownership worthless under a particular portion of property (such as being too close to a dwelling, etc). CONSULT LOCAL COUNSEL!!!