We purchased our land from an individual and signed an installment loan for which we are making monthly payments. Recently natural gas and oil has been found in our area and the gas companies have gotten all the land owners whose land joins our property to sign contracts for leasing and royalties. The individual that we have our loan is in the process of signing with the gas company and our land will be included. We had talked about trying to get another loan to pay our loan off (our interest rate is really high) and take advantage of the profit to be made when they start drilling in one month. However, when I checked our loan agreement it reads:
Upon payment of the entire debt with interest when due, together with all taxes, assessments and insurance premiums due hereafter, SELLER will convey to BUYER the above described property by WARRANTY DEED. Seller hereby reserves royalties, mineral rights, oil and gas rights.
To me this means that the individual we are buying the land from is the only one that will forever be entitled to any profit made from the drilling, even after we pay our land off. Is this true?
Upon payment of the entire debt with interest when due, together with all taxes, assessments and insurance premiums due hereafter, SELLER will convey to BUYER the above described property by WARRANTY DEED. Seller hereby reserves royalties, mineral rights, oil and gas rights.
To me this means that the individual we are buying the land from is the only one that will forever be entitled to any profit made from the drilling, even after we pay our land off. Is this true?
