Important Points To Pay Heed Before Selling Mineral Rights In Texas

If you are in Texas, before you attempt to sell mineral rights, confirm that you own the mineral rights to begin with. In some cases the surface rights have been severed from the mineral rights. This severance could be by a mineral deed or by reservation deed. Check your deed or go to your courthouse to ascertain your right of ownership. Mineral rights in Texas sometimes go back to the 17th century. A right buyer will approach you only when they have satisfied themselves of your mineral rights. Accept offers only when only the same is offered in writing.

Negotiations for the lease of mineral rights in Texas involve bonus amount, oil and gas royalties - besides the use of water and indemnity against damages. The initial term and renewal are also negotiated. There is a marked difference between leasing and selling of your mineral rights. You must exercise caution and consult an attorney prior to signing the document.

Selling Mineral Rights? Here’s what you need to know

Different states in the US have introduced laws regarding mineral rights. Laws in Texas go back to 1869 when it was still under two flags, those of Spain and Mexico. The mineral rights could be severed from the surface rights and either transferred or sold separately. Laws in New York date back to Nov 1865 when oil was struck in Cattaraugus County.

Generally, mineral rights have to be clearly owned irrespective of the surface property. The owner of mineral rights can sell, lease or transfer these rights to another individual or company. Mineral rights agreements have to be drawn up accordingly to register the transaction. Such an agreement could be for a lease between the owner, the lessor and the producer, the lessee. The lease has a definite first term of operation and quantifies the bonus amount and the royalty to be paid to the lessor.

Understanding US Mineral Rights

Minerals - defined as fossil fuels, metals and their ores - include non-metals and even gravel or peat. In the USA, the right of ownership of the minerals beneath the surface of our property rests with the owner. Therefore, an agency interested in buying mineral rights can do so without buying the surface property. Further, the owner can sell or lease the oil and gas rights alone and the other minerals separately. Thirdly, the sale or lease of US mineral rights could be up to a certain depth only. Mineral rights can be confirmed by studying the deed to the property.

The agency interested in buying mineral rights should therefore refer to the deed. Mineral rights could also be leased for a period decided upon by the owner, the lessor and the producer, the lessee.