Re: Your thoughts on mineral rights

Posted by PKurilecz on September 19, 2004 at 08:19:09 from (69.148.70.126):

In Reply to: Re: Your thoughts on mineral rights posted by ChuckG on September 18, 2004 at 08:21:35:

Hello ChuckG:

As far as these attachments go, talk to an attorney who is experienced in oil and gas law.

If the minerals are severed from the surface estate, yes the mineral owners can extract the minerals. It is not necessarily done at a whim. It is only done if it can be profitable.

It is my understanding that what consitutes "minerals" in Texas is somewhat unclear. It is my understanding that the legal theory is what is known as the "surface destruction" test. If the extraction of the mineral is such that the surface is destroyed and the surface rights owners use of the land is unreasonably impaired, then those minerals are attached to the surface estate and not the mineral estate.

For example, suppose there is a vein of lignite 65 feet below the surface of the ground. A broad mineral rights reservation exists previously in the chain of title. To recover the lignite would require strip mining the land. It is my understanding that the mineral rights owner would not be able to extract the lignite as the strip mining operation would destroy the surface. But then again in Texas, it also depends on how good your lawyer is. As far as I know the issue is not fully resolved.

Some theories that I have heard are based on the concept that the original grantor reserved the "minerals" did so because they thought that oil and gas might exist.

One other general thought. If you are purchasing land from someone who owns a fee simple estate and the grantor wants to retain the minerals, you don't have to accept the wording of their reservation. As in any transaction, it is all subject to negotiation.

Hope this helps.

PKurilecz

Follow Ups:

• Re: Your thoughts on mineral rights ChuckG 09:29:54 09/19/04 (0)

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