Co-tenants of a property must get permission to proceed with removal of minerals from the estate

Writen by Victoria Munson |

Published: March 4, 2024

Case Study: O’Malley v. Adams

2023 IL App (5th) 220206

The O’Malley Trust and the Prather Trust owned farmland as tenants in common with each holding a 50% interest. O’Malley contracted with a third party to remove and sell oil and natural gas (minerals). This action was taken without the consent of co-tenant Prather, who filed suit.

The court held that that the owner of a one-half interest or more in a mineral estate (O’Malley) does not have an “unfettered right” to remove and market minerals (oil and natural gas) from the mineral estate. An owner may do so with the permission of the co-tenants or with a court order.  The matter was remanded back to the circuit court for a ruling on the facts.

Takeaways:

Property owners need permission from the co-tenants of the property or a court order to proceed with removal of minerals from the estate.

The Illinois Oil and Gas Rights Act provides a statutory process for owners to petition the court for an order permitting them to remove minerals.

About the writer: Prior to joining Illinois REALTORS® in 2022, Victoria (Vicki) Munson was an attorney in private practice focusing on real estate and estate planning matters. She enjoyed assisting buyers and sellers in bringing their transactions to the closing table. Victoria earned her bachelor’s degree from Western Illinois University and her Juris Doctor from The John Marshall Law School.

Your Illinois REALTORS® Legal Team