In Texas, mineral rights are a distinct and valuable type of property interest. They can be severed from surface rights, meaning one party can own the land, and another can own the minerals below it. Here’s a breakdown of key points:
🔍 What Are Mineral Rights?
Mineral rights give the holder the legal authority to explore for, produce, and sell minerals (like oil, natural gas, and other subsurface resources) beneath a property.
📜 Types of Mineral Ownership
- Mineral Rights (or Mineral Estate)
- Includes rights to explore, extract, and lease minerals.
- Can be sold or leased to oil and gas companies.
- Surface Rights
- The right to use the land at the surface.
- If the mineral rights are severed, surface owners may have limited control over oil/gas operations.
- Royalty Interest
- A share of production income, typically 12.5% to 25%, without operational responsibilities.
- Working Interest
- The right to drill and a share of production, but with liability for a share of drilling/operating costs.
⚖️ Key Legal Principles in Texas
- Dominant Mineral Estate Doctrine
Mineral rights are considered the dominant estate. The mineral owner (or their lessee) has the right to reasonable use of the surface to access minerals — unless otherwise restricted by contract. - Severance
Mineral rights can be sold or transferred separately from the surface. This is common in Texas. - Notice
Texas law does not require mineral owners to notify surface owners before transferring rights, unless specified in a lease or deed.
🧾 Leases and Royalties
Most oil and gas production occurs through leases:
- The mineral owner signs a lease with an energy company.
- The company pays a bonus (upfront), a royalty (percentage of production), and possibly delay rentals (payments to postpone drilling).
🏠 Buying Land in Texas?
When purchasing land, do not assume you own the mineral rights unless:
- The deed explicitly states that mineral rights are included.
- A title search or mineral rights report confirms ownership.
⚠️ Risks and Considerations
- Surface owners can face disruption from drilling unless a surface use agreement is in place.
- Selling or leasing mineral rights can affect property value and usage.
- Rights can be fractionally owned and passed down, complicating ownership and leasing.