Lawyer urges caution in transfer of mineral rights

Staff report

SALEM

A local attorney is urging landowners to use caution when it comes to signing mineral-rights leases.

Alan D. Wenger, an attorney with Harrington, Hoppe & Mitchell, says mineral-rights leases often appear to rival monetary figures of shale-gas leases.

Sometimes, however, they involve the outright sale of a property’s mineral rights and would prevent the landowner from royalty opportunities.

“This is not the time to see dollar signs and start signing papers,” Wenger said. “But that’s the result some of these outfits offering to buy mineral rights are hoping to create.”

Wenger said mineral rights should be appraised before they are sold. Landowners also should be aware of their protections and privileges.

“When they’re offered payments that rival what the shale leases are offering, they’re impressed,” he said. “But they need to realize these transactions are sales, not leases. And they need to make sure they understand what they’re being asked to sign.”