Also known as a mineral estate, mineral rights are just what their name implies: The right of the owner to utilize minerals found below the surface of property. Besides minerals, these rights can apply to oil and gas. Interestingly, mineral rights can be separate from actual land ownership.

Can you still buy mineral rights?

In the United States, mineral rights can be sold or conveyed separately from property rights. As a result, owning a piece of land does not necessarily mean you also own the rights to the minerals beneath it. Many property owners do not understand mineral rights.

Are mineral rights considered an asset Aspe?

An identifiable non-monetary asset without physical substance. Such an asset must be identifiable, allow the owner to have control over a resource, and provide future economic benefits. Examples: mineral rights, databases, franchises, concessions, licenses, patents, trade-marks, and copyrights.

Can you sell your land and keep your mineral rights?

Well, the answer is yes. You can sell your land and keep your mineral rights. In order to do so, you must add an exception in the contract of the sale of your land. You will be entering into a split estate contact with the new party, who will now be the owner of the surface rights.

Who is the owner of the minerals under your property?

For example, if your property is in an area where oil rigs are an everyday sight, where natural gas drilling is prevalent, or where coal mining operations exist, if you don’t own the minerals under your land, the mineral owner might come calling.

Can you convey mineral rights in one deed?

An owner can convey her property and reserve the mineral rights in just one deed, known as a reservation, or convey the mineral rights in one deed then convey the remaining surface and improvements in another one. The subsections below explain the difference between a reservation and a conveyance of minerals.

What does it mean when mineral rights are leased?

If mineral rights are not ‘open’ then they are said to be ‘leased.’ If the mineral rights are ‘leased’ then an oil and gas company has the right to produce or is already producing the minerals from the property. Discovering a property has a ‘leased’ status is not the end of the conversation.