Fractional Undivided Interests in Oil and Gas or Other Mineral Rights Are Securities
August 2002 By David M. Abbott Jr.
Fractional undivided interests in oil and gas or other minerals have been defined as securities in both state and federal laws since many of these laws were enacted decades ago. Although exemptions from the registration provisions for securities for certain types of offerings exist, there are no exemptions from the antifraud provisions of these laws. The Pennsylvania Cease & Desist order reproduced in the adjacent text box serves as a reminder of this.