What Are Mineral Rights and Who Owns Them?

Key takeaways

• Mineral rights define who owns underground resources like oil, gas, coal, and precious metals. Missing or sold mineral rights can affect property value and negotiation power during a home sale.
  
• Ownership of mineral rights can be separate from surface rights.
  
• Knowing who owns mineral rights is essential before buying or selling property.
  
• States like Texas, Oklahoma, Colorado, North Dakota, and Pennsylvania have the most active mineral rights markets.
  

Many people assume that owning land means owning everything beneath the surface, but that’s not always true. In some cases, the mineral rights — which include natural resources such as oil, gas, or precious metals — may be owned separately from the land itself.

Remember the opening of The Beverly Hillbillies, when Uncle Jed was “shootin’ at some food, and up through the ground came a-bubblin’ crude”? Oil, that is — black gold, Texas tea. We all wish it were that easy to strike it rich and become a millionaire overnight. But before you find yourself in a similar situation, it’s essential to understand what you actually own when purchasing property or land.

In this article, we’ll break down how mineral rights work, why they matter, and how to navigate or negotiate them when buying or selling real estate.

What are mineral rights?

• A mineral right is a legal interest that gives the owner the ability to explore, extract, or sell subsurface minerals.

• A surface right gives the owner control of the land’s surface for living, building, or farming.

A property may include both surface and mineral rights, or these rights may be severed into separate ownerships. When mineral rights are severed, the mineral owner holds the legal authority to access underground resources — even if another person owns the land above.

This concept is common in resource-rich states such as Texas, Oklahoma, and North Dakota.

What minerals are not included?

Several minerals aren’t included in mineral rights. Common examples include:

• Limestone

• Sand

• Gravel

• Subsurface water

The rules vary by location, so if you’re unsure whether something is covered by your mineral rights, check with a real estate attorney or your local land office.

Do I own the mineral rights to my property?

Property ownership does not automatically include mineral rights. These rights may have been sold, leased, or reserved by a previous owner decades ago.

Fact: According to Rocket Mortgage, mineral rights transfers must be recorded in county land records to be valid.

If you own a property deed, review it for language such as “all mineral rights conveyed” or “mineral rights excepted and reserved.”

You can verify ownership by ordering a title search or consulting a landman, a professional who researches mineral ownership histories.

How to find out who owns the mineral rights to your property

You can determine mineral rights ownership through public and professional resources:

• County clerk or recorder’s office: Property deeds and mineral conveyances are publicly recorded.

• Title companies: A title search can reveal severed mineral ownership.

• State geological surveys: Many states maintain online databases of oil, gas, and mineral activity.

• Free mineral rights search: Some websites offer lookup tools, but they’re often incomplete. Always verify results with official records.

How mineral rights work

Owning mineral rights allows you to explore, extract, or profit from natural resources beneath your land — such as oil, gas, or precious metals. Some mineral rights owners choose to sell or lease these rights to companies that have the means to explore and develop the area.

When selling or leasing mineral rights, owners typically receive compensation through royalties, lease payments, or shut-in payments (paid when a well capable of producing resources is temporarily not in use). Understanding how these agreements work can help you protect your investment and maximize returns.

Key provisions in mineral rights sales agreements

Mineral rights sales agreements often include detailed provisions outlining the deal terms — much like contingencies in a traditional home sale. These provisions clarify responsibilities, timelines, and conditions under which the sale can proceed.

Common provisions include:

• Conveyance: Defines the price, specific minerals covered, and any net profit or royalty interests.

• Diligence: Sets a time frame for the buyer to verify the title and allows withdrawal if issues arise.

• Closing: Details how and when the transaction will be completed, including costs and taxes.

How mineral rights are held

Mineral and surface rights together are referred to as an estate. How these rights are structured can vary by location and ownership history.
There are three primary ways mineral rights are held:

• Unified estate: The surface and mineral rights are owned together.

• Severed estate: Ownership of mineral and surface rights is separate.

• Fractional estate: Multiple owners share portions of the mineral rights.

Special circumstances and state differences

In many parts of the U.S., especially in energy-producing states such as Texas, Oklahoma, Pennsylvania, Louisiana, Colorado, and New Mexico, it’s common for mineral rights to be severed from surface rights. This often stems from decades of oil, gas, and coal development, when landowners sold or leased subsurface rights but retained ownership of the land above.

If you’re buying property in one of these states, don’t assume mineral rights are included in your deed. Always verify ownership before making an offer to avoid complications later.

Some states have unique disclosure requirements. For instance, North Carolina requires sellers to provide a Mineral and Oil and Gas Rights Mandatory Disclosure Statement at closing. This form clarifies whether mineral rights have been severed or will be severed before the sale.

How to negotiate mineral rights

Negotiating mineral rights can be complex, but understanding the key factors that influence value will help you secure a fair deal. Preparation and professional guidance are essential for both buyers and sellers.

Tips for effective negotiation:

• Know the market value: Research current lease and royalty rates in your area.

• Understand your leverage: Landowners in high-demand regions or near active wells have stronger negotiating power.

• Negotiate payment terms: Discuss royalty percentages, lease duration, and renewal options.

• Protect your surface rights: Include provisions that limit where and how drilling can occur.

• Seek professional help: Hire a landman, mineral rights attorney, or appraiser to guide you.

Successful negotiations balance fair compensation with clear terms that protect both the landowner and the buyer.

How to protect yourself when buying property with mineral rights

Whether you’re buying property in a high-production area or a region with little drilling activity, take these steps to protect your investment:

• Read the disclosure: Review any state-required mineral rights forms carefully.

• Check the appraisal: Ensure it reflects whether mineral rights are included or severed.

• Include it in the contract: Specify in writing which rights are being transferred — surface, mineral, or both.

• Seek expert guidance: Consult a real estate attorney familiar with local mineral laws.
  

Frequently asked questions

How do I find out who owns the mineral rights to my property?
Check your county recorder’s office, hire a title company, or consult a landman to trace mineral ownership.

Do I own the mineral rights to my property?
Not necessarily. Mineral rights can be severed and owned separately from surface rights. Review your deed and title history for confirmation.

Can I do a free mineral rights search?
Yes, but free searches are often incomplete. Always confirm with official county or state land records.

Why would a seller keep mineral rights?
To retain potential income from resource extraction and future royalties.

What are the risks of owning mineral rights?
Liability, legal disputes, and fluctuating market values.

Bottom line

Mineral rights can significantly affect a property’s value, use, and negotiation potential.
When a property includes mineral rights, it often holds greater long-term potential for income and resale value — especially in active oil, gas, or mining regions.

However, when mineral rights have been severed or sold, property use may be limited. For example, a buyer might not be able to drill a well, lease to an energy company, or prevent future mineral development nearby. That can reduce property value or make financing harder to secure.

Before buying or selling, review ownership records, confirm whether mineral rights are included, and consult a real estate attorney or landman. These professionals can help you interpret lease terms, royalty agreements, and potential encumbrances on the title. Clarifying ownership early protects your investment and ensures a smoother transaction.

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