Journal Staff Writer / Albuquerque Journal North
"Not everyone can be fashion designer Tom Ford.
That was one argument made by opponents of a state House bill that would give landowners a chance to purchase the mineral rights beneath their property in order to forestall oil and gas drilling.
Ford did just that in 2007, paying $84,000 to buy the lease on more than 1,400 acres to protect his Galisteo ranch from energy development. But not everyone has that kind of dough, critics said.
"I would certainly not have the money to buy the mineral rights," said Rep. Paul Bandy, an Aztec Republican and member of the Energy and Natural Resources Committee, which considered the bill Wednesday.
Rep. Brian Egolf, D-Santa Fe, said his bill was meant to put surface owners on a more equal footing with oil and gas operators. No action was taken on the measure Wednesday.
Egolf said many landowners don't know that they live on split estates, in which the minerals that lie beneath their properties are owned by someone else. Such was the case in the Galisteo Basin south of Santa Fe in 2007, when a Houston-based company purchased mineral rights and announced exploratory plans, and many homeowners were surprised to learn drilling could take place without their permission.
Under Egolf's bill, operators would have to inform surface owners of their intent to lease mineral rights. Surface owners would then be given at least 30 days to try to negotiate a purchase of the mineral rights, if they're so inclined.
"We will give surface owners the opportunity to have a say ... over what happens on their property," Egolf said.
The freshman lawmaker believes many mineral owners may jump at the chance to receive an upfront payment for their holdings, instead of waiting for royalty checks to trickle in over many years." More (subscription required)>>>>
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