The MOG Disclosure: Interpreting the "Mineral, Oil, and Gas" Rights on Your Property

If you are buying a home in New Hanover, Pender, or Brunswick County, you will eventually be handed a specific one-page form: the Mineral, Oil, and Gas Rights Mandatory Disclosure Statement (MOG).

Most buyers glance at it, see a bunch of "No Representation" checkboxes, and sign it without a second thought. They assume, "This isn't Texas. There’s no oil in my backyard in Hampstead."

While it is true that you are unlikely to find an oil derrick on your lawn, this form is not just a formality. In our region, "mineral rights" can mean sand, limestone, and ancient timber reservations—and if you don't understand what you are signing, you could be buying a property where you own the dirt, but someone else owns what's underneath it.

Here is how to interpret the MOG disclosure in the Cape Fear region.

1. The Core Concept: "Severance"

In North Carolina, land ownership is like a layer cake. You can own the icing (the surface) while someone else owns the cake (the subsurface).

Severed Rights: This means a previous owner sold off the rights to the minerals, oil, or gas to a third party.

The Risk: If rights are severed, the owner of those minerals typically has the right of entry. Legally, they could bring heavy equipment onto your land to extract their resources, potentially disrupting your surface use.

2. Translating the Checkboxes

The form asks the seller four main questions. Here is what their answers actually tell you.

Question 1 & 2: "Severed by a PREVIOUS Owner"

"Yes": The seller knows for a fact that rights were sold off before they bought the house. Red flag: You need to see the deed.

"No": The seller has checked their title policy and believes they own everything.

"No Representation" (The Most Common): This is the standard answer in our market. It translates to: "I honestly don't know. I haven't checked, and I'm not paying a lawyer to find out. It's your problem to investigate."

Buyer Action: Do not assume "No Rep" means "No." It just means "Unknown."

Question 3 & 4: "Severed by the CURRENT Owner"

The Catch: Sellers are NOT allowed to check "No Representation" for these questions. They must answer Yes or No.

Why: A seller definitely knows if they sold the rights last week. If you see a "Yes" here, stop everything and call your attorney.

3. The Local Context: What Are We Actually Mining?

In New Hanover and Pender counties, we aren't usually worried about fracking. We are worried about Aggregates.

Castle Hayne Limestone: This massive limestone aquifer system runs under much of our region (especially Northern New Hanover and Pender). It is mined for cement and road base.

Sand Mining: In rural Pender and Brunswick counties, sand mining is big business. We have seen instances where large tracts of land had sand rights severed decades ago.

Ancient "Timber" Reservations: In the 1900s, massive timber companies owned much of this region. Occasionally, old deeds will show that they reserved "mineral and timber rights" in perpetuity. While the Marketable Title Act extinguishes some ancient claims (older than 30 years), it has exceptions.

4. The "Heirs' Property" Connection

In rural coastal areas (like parts of Navassa or Burgaw), you may encounter "Heirs' Property"—land passed down without a will for generations.

The Complexity: Often, mineral rights in these situations were fractured among dozens of family members decades ago. A title search might reveal that while you are buying the surface from the current seller, 50 distant cousins still hold a claim to the subsurface.

5. How to Protect Yourself

You can't rely on the seller's disclosure. You must rely on your Closing Attorney.

The Title Search: During your Due Diligence period, your attorney will pull the "Chain of Title." Ask them specifically: "Did you see any mineral reservations in the deed history?"

Title Insurance: This is your safety net. Standard policies often exclude mineral rights. If you are buying acreage or land in a known mining corridor (like Castle Hayne), ask your attorney about an endorsement that protects against surface damage from future extraction.

Don't Panic over "No Rep": In a standard subdivision (like Brunswick Forest or Riverlights), a "No Representation" is standard and usually low risk, as the developer likely unified the rights before platting the neighborhood. The risk is highest in rural, large-acreage, or historic transactions.

The Bottom Line

The MOG form is a trigger for a conversation, not a guarantee of safety. When you see "No Representation," it is your signal to dig deeper (pun intended).

At Aspyre Realty Group, we review the MOG with you line-by-line. If we see a red flag—like a property located near an active quarry or a rural tract with a messy deed history—we ensure your attorney investigates the subsurface rights before your Due Diligence money goes hard.

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