Mineral rights laws in Ohio.
Mineral rights refers to the ownership of minerals, such as oil and natural gas, that are beneath the ground surface. These rights often come into question in states like Ohio, where there are reservoirs of naturally occurring minerals under the land. In the United State, a landowner has rights and ownership over the land as well as any minerals found under the surface. The owner, however, can choose to sell his mineral rights and subsurface rights.
Ownership Rights
In the United States, an individual who holds a title in fee simple absolute, his land and ownership rights extend to all minerals and gases below the surface. A fee simple absolute title, also known as a fee simple title, is a type of title where the title holder has the total and absolute right of ownership to the land indefinitely. Fee simple titles are the most common titles to land in the United States. Owners who have fee simple titles have the right to sell, lease or gift any part of the land, including minerals below the surface.
Mineral Leases and Royalties
In Ohio, since owners have surface rights and mineral rights below the surface, many owners choose to lease rights to any subsurface minerals rather than sell the mineral rights outright. Mining companies also tend to prefer leases of lands when they are unaware how rich the area might be. Often it is unknown to the owner and the mining company how rich or poor the area is until excavation has commenced. When an owner leases rights to his subsurface minerals the mining company typically pays an initial fee to enter the property and pays the owner a percentage, or royalty, of production profits.
Damage to Surface
In some instances, underground mining may cause damage to the surface. In extreme circumstances, the earth can buckle and houses fall in. More commonly, homes on top of the surface experience structural damages or the land itself becomes damage. Often this damage occurs years after the mining has been completed. When surface damage happens, however, the owner typically does not have a right to sue the mining company for damages sustained to the surface property, particularly if the mining has been complete for several years. Most lease and sale agreements for mineral rights include a provision protecting the mining company from surface damage liability.
Tags: mining company, below surface, rights subsurface, have right, land United, mining been
