Gold mining on adjacent property

[Citydude]

Hi guys, were in the Blackhills of South Dakota. So, a gold company owns the property next to mine. They want to meet with me next week and I think I know what they want to meet with me about.

To prefix my question, I own the surface rights, they own the mineral rights. They are core drilling other areas around me gathering data. The "pay seam" is around 4000 feet down.

My question is if they want to use my road to get access to a possible core drilling site on their property to get to their property, what can I do?

They do directional drilling and there is a flat spot on their property to do this but they would need to use my road on my property. I'm clueless

 

[Doughknob]

Ask a reasonable fee for the use. Trying to get too much will just make them to go to court.

 

[2LaneCruzer]

Law school has been nearly 50 years ago, but as I recall, if you own mineral rights you have the legal right to access them...that may mean access to the surface rights. I suggest you contact a lawyer after you know what they want access to.

 

[Citydude]

Law school has been nearly 50 years ago, but as I recall, if you own mineral rights you have the legal right to access them...that may mean access to the surface rights. I suggest you contact a lawyer after you know what they want access to.

I will report back after the meeting next week. Thanks

 

[Torvy]

Sadly, that sounds right. I think whomever decided you could separate mineral rights from land ownership should occupy a special place in Hades.

My BIL grew up in Lead and he and his brother worked at Homestake during college.

Next time we're out that way I'll PM you and maybe share a beverage. Spent a lot of time in Sturgis area and still have family out that way.

 

[Rockbadchild]

laws and regulation varied but for my province this is the regulation...

Basically you can't stop them to access they right to mineral but the surface right are yours so they can only be granted to them if they are reasonable in the circumstances and the damage caused to any other person’s property can be sufficiently compensated.


Can a surface rights holder be obligated to sell his/her property? If the holder of the mining claim makes a production decision, the mining company has the option to purchase the property at 200% of its fair market value (as averaged by two appraisals), and the surface rights holder has the obligation to sell the property.

 

[oosik]

I'm watching this one.

 

[HawkinsHollow]

I know nothing about mineral vs surface rights. Sounds like a potential mess though. Best of luck.

When I was at geology field camp in Rapid City we went down in the Homestake gold mine. We were 5000' below the surface and the geothermal gradient made the freshly broken rock 130 deg F. The mine was air conditioned and was still over 100 deg. Pretty neat experience.

 

[ArlyA]

Lots of my relatives worked in Home Stake. Interesting.

 

[jigs_n_fixtures]

I would negotiate for them rebuilding the road, when they are done and maintaining it in the interim, if they are doing much.

Basically, a “Leave it as good or better than you found it, and don’t inconvenience me by your use.”, stance.

They have the right to get there. But typically not if they have alternate means on their own property. So, if there is a public right of way, or easement which abuts their place they are required to use their property. And, most of the lands in the west have easements attached on the section, half section, and quarter section lines.

But, using your road will probably be much less expensive than pioneering a new one. And still be less expensive, even if you have them improve your road in exchange for the use.

 

[Rockbadchild]

Is it a current active mining operation or only in the exploration phase ? ... if there isn't any or little mineralization above 4000 feet at that depth it will be a underground mine so there is chances you could get to keep your land but in my opinion its small .. if its not a active mine this could take a while to materialize 10 years or so, depending on how far they are in the feasibility study and environmental study processes would dictate how long you have... that would give you a idea on whether you should ask for land improvement or asking for cash, my point is if they are going to purchases your land in the near future there is no point asking them to invest in their ''own land'', if they know they are going to purchases it they will gladly improve the road free of charge, therefore you are betting to ask them for a passing fee in cash or fuel exchange or whet ever suit your need instead for road improvements ... I think you should be considering this as well.

 

[sandman2234]

A friend of mine in Louisiana shared an area that was being drilled on for gas. The gas company had a right of way to the well, but whoever drew it up failed to understand that it went right past the 400 yard marker on his gun range. First time the employees came to work when he was shooting, they called the company and a guy came out to discuss the issue. He had an old semi trailer that he had cut windows in for a shooting house and it was old when they put it there. Told the company representative they could change the direction of his range, but the shooting house probably wouldn't stand the move, so they had a complete new shooting house built in the direction of the new range. They built him a nice new range complete with insulated as well as heated and cooled shooting house (16x30 aprox) to remedy the problem.
Point is, a small expenditure such as this in the big picture of what they are spending is probably negotiable if you take the right stand with a reasonable attitude.
How long will it take you to set up a shooting range on your property?
David from jax

 

[AWSubie]

If there is any question of them using your land find yourself an attorney who specializes in mining and property rights in your state.

U will thank yourself later. The mining companies will promise you everything but avoid giving you anything. They will take every liberty they can if you don’t have a contract that limits their activities as much as possible by law.

 

[2LaneCruzer]

If there is any question of them using your land find yourself an attorney who specializes in mining and property rights in your state.

U will thank yourself later. The mining companies will promise you everything but avoid giving you anything. They will take every liberty they can if you don’t have a contract that limits their activities as much as possible by law.

Good advice. Don't forget an important detail that often doesn't get enough attention...reclamation. Surface mining especially has some drastic environmental consequences, and often ground water, drainage, vegetation, etc. are affected. Used to be they only paid you for the loss (diminution) of value, but I believe you can contractually hold the responsible for what the agreed to reclaim...assuming they put up bond or don't go bankrupt.

Oh yes. Dont' forget tailing processing, storage, removal and DISPOSAL.

 

[Citydude]

Thanks for all the replies. The pay streak is 4000-5000 feet down in looking at the old drill studies the former gold company gathered. I'm assuming, at this point, it will be an underground mine.

They have three small core drilling rigs in the area on property they bought. I know where the next drill area is and they would need to use 900 feet of my road to access their property.

The Blackhills are steep,

rugged, rocky and forested so building a road on their property would be a huge cost to them to go around my property.


They need water for the drilling operations and have water trucks hauling water 7 days a week.

They did try to buy our property last year through a real estate agent. I gave them a number they had to refuse since we didn't want to sell.

Hopefully I can get the full scope of their plans next week and report back.

Here is a sample of the area terrain. The road I'm on is 15% and the mining companies property is around 300 feet up the hill to my right.

 

[Rockbadchild]

Sound like it won't be a mine anytime soon that's if it will ever become one ... probably 10 to 20 years away if it dose take off these things take time... yes keep us posted it is pretty interesting stuff.

 

[WM75Guy]

What you don't want is to have your land indiscriminately tore up and you are left to clean up the mess. A good attorney that has experience in such matters would be worth paying for an hour of time to discuss it before you sign anything or you let them come onsite. Our local attorney charges $250 an hour for consultation. We own both the land and the mineral rights on property in West Texas. The oil and midstream companies pay us any time they need a ROW or easement for a pipeline, road, or well site. It is a one time payment. The companies we deal with have been good to work with us to minimize impact on cotton production. Others around us, not so much.

 

[Citydude]

What you don't want is to have your land indiscriminately tore up and you are left to clean up the mess. A good attorney that has experience in such matters would be worth paying for an hour of time to discuss it before you sign anything or you let them come onsite. Our local attorney charges $250 an hour for consultation. We own both the land and the mineral rights on property in West Texas. The oil and midstream companies pay us any time they need a ROW or easement for a pipeline, road, or well site. It is a one time payment. The companies we deal with have been good to work with us to minimize impact on cotton production. Others around us, not so much.

My wife and our neighbor are attorneys. But my wife is a judge for the state of Wyoming so ethics come into play with her getting involved legally.

I sincerely hope that the horrors I imagine are non players. Lol

 

[Raul-02]

My question is if they want to use my road to get access to a possible core drilling site on their property to get to their property, what can I do?

They do directional drilling and there is a flat spot on their property to do this but they would need to use my road on my property. I'm clueless

The first thing you do is consult a lawyer. They have squads of 'em. Don't you dare enter a negotiation with them without a lawyer. A lawyer will make sure you don't get hosed, screwed, left for dead, or otherwise Bushwhacked.
Gold mining is a profit-oriented business and handing you any more money than they absolutely have to is not what they want. Arm yourself.
And no they can't just demand to use your road, not if it is your road on your property. They can't demand anything and your mineral rights extend under your property all the way to the core of the planet.
Sky rights used to go straight up to the heavens but the Airline industry lobbied Congress for a change in the law.

 

[Rockbadchild]

The first thing you do is consult a lawyer. They have squads of 'em. Don't you dare enter a negotiation with them without a lawyer. A lawyer will make sure you don't get hosed, screwed, left for dead, or otherwise Bushwhacked.
Gold mining is a profit-oriented business and handing you any more money than they absolutely have to is not what they want. Arm yourself.
And no they can't just demand to use your road, not if it is your road on your property. They can't demand anything and your mineral rights extend under your property all the way to the core of the planet.
Sky rights used to go straight up to the heavens but the Airline industry lobbied Congress for a change in the law.

no true for all the stats ... it varies per stats but if you only have property rights you Do Not Own the mineral rights and cannot stop anyone who has the mining rights to access them... and you certainly do not own the air space above your property, you ''own'' only the first 500 feet ...