Thursday, April 7, 2011

Surface Rights Vs Mineral Rights

Mineral rights owners can do whatever it takes to extract the minerals.


Surface rights apply to the surface of the land, but mineral rights apply to everything under the land. "The Prairie Star" states that separation historically occurred when landowners put liens against their seemingly worthless mineral rights. Severance can occur when the current owner of both rights decides to sell one right and retain the other.


Priority


Because minerals cannot be extracted without disturbing the surface of land, mineral rights supersede surface rights, and the mineral rights holder can do whatever it takes to extract the minerals. Mineral rights owners must have respect for the land owner, however, and do only what is absolutely necessary to remove the minerals.


Land Sale


Any person who intends to develop a piece of land and has the surface rights should first locate the mineral rights holder to determine whether the mineral rights holder will be attempting to access the minerals and to what extent the mineral extraction will disturb the surface.


Waiver


A surface waiver may be acquired by the surface rights owner that states the mineral rights owner relinquishes all rights to the land's surface. This waiver is often required for real-estate sales, according to the "Houston Business Journal." Some minerals may be extracted from an adjacent property after the property has been developed.


Severance


It is most common for the real-estate owner to retain the mineral rights and sell the surface rights. If the seller does not specify that the mineral rights are not included in the sale of the land, the mineral rights also transfer to the buyer. A mineral deed or reservation can also be used, according to the Kansas Geological Survey.


Lease and Sale


Third parties can also lease or purchase mineral rights from the mineral rights owner, giving the leaseholder all of the rights of the mineral rights holder in extracting the minerals from the land, including disturbing the surface of the land, according to the Mineral Rights Leasing website.







Tags: mineral rights, mineral rights, mineral rights holder, rights holder, surface rights