EAG-057 9/18

Determining Mineral Ownership in Texas Tiffany Dowell Lashmet, Assistant Professor and Extension Specialist

Photo by Blair Fannin, Texas A&M AgriLife Extension Service

When a person purchases property in Texas, expensive task. Here are several options for he or she might not receive ownership of the landowners to consider in determining mineral mineral rights to that property. Determining ownership: whether such minerals were conveyed with 1 If an oil or gas company is seeking a the property can be frustrating for a new lease on the property or already has landowner, particularly one not experienced in one in place, the landowner can request oil and gas production or law. a copy of the company’s title research In Texas, mineral ownership can be (and on the minerals. Some oil and gas often is) severed from surface ownership. companies are willing to share this Often, these severances occurred several information, while others are not. It is generations ago, leaving current owners unsure worth asking the question, particularly of their ownership status. For example, if a if the landowner and oil and gas landowner owns 100 percent of the surface and company could end up in negotiations to minerals of a property, the landowner could lease the minerals at issue. Some mineral sell the surface rights of that property, but owners have included provisions in oil reserve the mineral rights, which is a severance and gas leases that require the lessee to by reservation. provide a copy of pages from the title Another way severances occur is by opinion that reflect the mineral owners’ conveyance, where a landowner conveys the interest. Similarly, if you are receiving mineral rights to another party while still a royalty check or previously received a maintaining ownership of the surface rights of copy of a division order, your percentage the property. Further complicating the issue of mineral ownership may be reflected is the fact that ownership of mineral rights on these documents. may be divided in many ways, including by 2 The landowner should review the title percentage or by certain rights. insurance policy he or she got when Unfortunately, determining whether a purchasing the property. Unfortunately, surface owner has any portion of ownership most title companies no longer state of the mineral estate may be a challenging and an opinion as to mineral ownership because it is time-consuming to do the research and could result in much risk to the insurer if a mistake was made. Nevertheless, checking to see if the title policy does mention mineral ownership is a good idea. Historical oil and gas leases should be reflected on the report. If your immediate predecessor in title is listed as a lessor, that indicates they held minerals Photo by Texas A&M AgriLife Extension Service before the sale to you. If your immediate predecessor owned some portion of mineral rights and did not expressly are leery of working for individual reserve those rights, they passed on to the landowners because landowners often next owner with the sale of the property. do not understand the complexity of 3 A landowner can do his or her own deed the research or the time and money it record search. This option may sound may cost to get an answer, leaving the good, but sorting through deed records landowner upset when a bill arrives. to determine when, if, and how minerals If a landowner can find a landman may have been reserved or severed willing to do the title search, this can decades ago is a complicated process. be a good option. The chain of title must be traced back to 5 The landowner can hire an attorney determine ownership and ensure that to conduct the title research. As there were no mineral rights ever reserved with most situations that involve or severed, which can be extremely hiring legal counsel, this option time-consuming and difficult for even can be expensive, depending on the experienced oil and gas attorneys. complexity of the title documents at 4 A landowner can hire a landman to issue. Be sure to ask an attorney for conduct the title research. Landmen an upfront estimate of what the cost spend their days in courthouses might be to make a title determination. researching deeds and records to Also, be sure that payment terms are determine mineral ownership. They understood and agreed upon before are experienced and typically very they begin the work. efficient. But, it may be difficult to find Determining the ownership of the a landman willing and able to do this. property a landowner owns or is seeking to Many good landmen work for oil and buy is essential for understanding the rights gas companies exclusively, meaning that landowner has to use or otherwise benefit they are usually paid quite well and are from that property, as well as being aware of extremely busy. Also, some landmen the rights others may have to use it.

The information given herein is for educational purposes only. The Texas A&M AgriLife Extension Service does not make recommendations for any legal action nor for the content of any legal document. Specific legal questions should always be directed to an attorney-at-law.

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