Mineral Rights
The ownership interest in subsurface minerals such as oil, gas, coal, and metals. Mineral rights can be severed from surface rights, allowing one party to own the surface while another owns the minerals below.
Understanding Mineral Rights
In the United States, property ownership extends from the sky to the center of the earth—but this can be divided. Mineral rights represent ownership of subsurface resources. When mineral rights are 'severed,' the surface and minerals become separate estates that can be owned by different parties.
Once severed, mineral rights run with the land indefinitely unless specifically conveyed. Many properties, especially in oil-producing regions, had minerals severed decades ago. Current surface owners may own none, some, or all of the minerals—the only way to know is through title examination.
Mineral ownership includes the right to extract or lease extraction rights. Mineral leases to oil and gas companies generate bonus payments and ongoing royalties. In productive areas, mineral rights can be more valuable than the surface.
For curative title investors, mineral rights add complexity. Tax sales may or may not include minerals (depending on how they're taxed). When acquiring properties, understanding whether minerals convey—and what they might be worth—is essential due diligence.
Real-World Example
An investor purchases land at tax sale. The deed conveys only the surface rights—minerals were severed in 1952 and separately owned. The investor owns the land but not the oil beneath it. The mineral owner later leases to an oil company, which drills on the surface without compensation to the surface owner beyond surface damages.
Texas-Specific Information
Texas has extensive history of mineral severance, particularly in West Texas and the Gulf Coast. Texas law generally favors mineral owners—they have an implied right to use as much of the surface as reasonably necessary for extraction. Texas tax sales may or may not include minerals depending on how they're assessed. Mineral interests are often separately taxed and could be sold at a separate tax sale.
Track Deals Involving Mineral Rights
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