Coincidentally, a large gas field discovery here in north west Louisiana and east Texas has residents clamoring to be aboard the financial bonanza train in the form of mineral right's leases and royalities.
Many landowners are reaping financial windfalls while some are greatly disappointed although both sit on top of the same Hainesville Shale gas field.
As citizens are finding out, the issue is governed by individual state law.
In Louisiana, no one "owns" the minerals (gas/oil) under the surface but property owners have the right to exploit these minerals themselves or lease that right to bring gas/oil to the surface where ownership is attached to the entity holding the lease and/or property.
Leases are bought for ten years although the lease will remain in effect longer if production is continuing. If there is no production of minerals or no drilling then the lease reverts back to the property owner after ten years.
A property owner can sell the land but retain the mineral rights for ten years or more if production is ongoing.
The developing companies are signing up property owners, so are speculators and the prices are not uniform. The buyers count on property owners not knowing the law and the economics of the situation thus getting the lease for a low cost. For example, the first leases were acquired at $250 per acre now the leases are selling for several thousand per acre. FWIW.
Cheers,
