Short answer: “OGM rights” means oil, gas and mineral rights. In Pennsylvania deeds and listings, OGM refers to the right to own and develop the oil, gas and other minerals under a piece of land. Those rights can be owned separately from the surface, so buying a house or a farm does not always mean you own what is underneath it.
You will see “OGM” in real estate listings, deeds and title reports across Washington County and the rest of southwestern Pennsylvania, where Marcellus and Utica shale development has made these rights valuable. This guide explains what OGM rights include, how they get separated from the land, and how to find out who owns them.
What does OGM stand for?
OGM stands for oil, gas and minerals. A listing that says “OGM rights convey” means the seller says the oil, gas and mineral rights will transfer to the buyer. “OGM rights reserved” or “no OGM” means the seller, or a past owner, has kept them.
Pennsylvania’s three estates in land
Pennsylvania is unusual because it recognizes three separate interests in land, and each one can be owned by a different person:
- The surface estate. The land you live on, farm or build on.
- The mineral estate. The oil, gas, coal and other minerals below the surface.
- The support estate. The right to have the surface supported from below, which matters most in coal mining areas.
When a deed “excepts and reserves” the oil and gas, the mineral estate is split off and stays with the seller or a prior owner. It can then be sold, leased or inherited on its own.
Does “minerals” include oil and gas in Pennsylvania?
Not always. Under a long-standing Pennsylvania rule known as the Dunham rule, a deed that reserves only “minerals” is presumed not to include oil and gas unless the deed clearly says so. The Pennsylvania Supreme Court reaffirmed this rule in 2013 in Butler v. Charles Powers Estate. That is why the exact wording of old deeds matters so much, and why many deeds say “oil, gas and minerals” rather than just “minerals.”
How to find out if you own the OGM rights
- Read your deed. Look for words like “excepting and reserving,” “oil and gas,” or “minerals.”
- Trace the chain of title. A reservation in a deed from the 1900s still applies today. You may need to search deeds back many decades at the county recorder of deeds.
- Check for leases. Recorded oil and gas leases and memorandums show who has leased the minerals.
- Look at royalty records. If someone receives royalties from a well on your tract, they likely own all or part of the minerals.
- Get a title opinion. For a firm answer, an attorney can review the chain of title and give a written title opinion.
Our guide to who owns mineral rights in Pennsylvania walks through the search in more detail.
Buying land without the OGM rights
Buying land where the oil and gas have been reserved is common in southwestern Pennsylvania. Before you buy, it helps to know:
- The mineral owner, or their lessee, may have rights to use part of the surface for drilling, roads or pipelines, depending on the lease and the deed.
- You will not receive bonus or royalty payments from wells on your land.
- A surface use agreement can sometimes protect the surface owner’s interests.
Ask for a title search that covers the mineral estate, not just the surface. Our real estate attorneys can help.
What if the mineral owner cannot be found?
When old reservations pass through many generations, some owners become hard to locate. Pennsylvania’s Dormant Oil and Gas Act allows development to go forward in some situations, with the missing owner’s share held in trust. This is a technical area, and the rules have strict conditions.
Frequently asked questions
What are OGM rights in real estate?
They are the rights to the oil, gas and minerals under the property. A listing should say whether they transfer with the sale.
Are OGM rights worth anything?
They can be. In active areas of Washington County, leased and producing minerals can pay bonuses and royalties. Try our mineral rights value calculator or royalty calculator for a rough estimate.
Can I buy back the OGM rights?
Sometimes. If you can identify the current owner, you can make an offer. Many owners will not sell in active drilling areas.
Do OGM rights pass in a will?
Yes. Mineral rights are property and pass by will or under Pennsylvania’s intestacy rules if there is no will. They also count for Pennsylvania inheritance tax.
Questions about the oil and gas under your land? Our mineral rights attorneys in Cecil Township can review your deed and title.