Mineral rights when buying property

[Rubberdown]

So piece of property we are looking at is just about perfect. However, the seller only owns 50% of the mineral rights. The 50% would be included with the purchase, but how does that affect us? I don’t want people coming in and drilling so it would really suck if the other party could somehow ruin the property.

We’re talking in the shulenberg to shiner area and they have been doing some drilling out there, although I think that is in the decrease these days.

[johnpaul]

You could have 99% of the minerals and the other 1% could still have someone come in and drill. Minerals trump surface ownership in the state of Texas. I doubt any oil company is going to drill with a 50% interest being unleased (assuming you wouldn’t sign a lease).

[oktx]

If you will own 50% that’s awesome. At least you will get surface damage and a little from the well.

[John Paul]

You could have 99% of the minerals and the other 1% could still have someone come in and drill. Minerals trump surface ownership in the state of Texas. I doubt any oil company is going to drill with a 50% interest being unleased (assuming you wouldn’t sign a lease).

^^This

And great name by the way.

If you buy it make sure they waive surface rights, it’s not total protection but it’s another arrow in the quiver.

[Big pig]

^^This

And great name by the way.

If you buy it make sure they waive surface rights, it’s not total protection but it’s another arrow in the quiver.

Good advice. 50% is great.

[RR 314]

^^This

And great name by the way.

If you buy it make sure they waive surface rights, it’s not total protection but it’s another arrow in the quiver.

Who is going to do a surface waiver agreement? The seller is seemingly conveying 100% of the mineral estate the own.

[Throwin Darts]

I'd be thrilled getting 50%. Its rare to get any these days.

[SC-001]

I'd be thrilled getting 50%. Its rare to get any these days.

This is correct, nobody transfers mineral rights these days

[quarterback]

Or you could be that guy who doesn't want to sign a lease but the other 50% does and their interest gets pooled into the nice new boomer well that gets drilled next door.

Getting 50% of the mineral interest is pretty huge these days. Take it!

[Texas452]

Be thankful for the 50%.
Mineral rights are hard to come by
I have 50% on one of my properties and it has paid for it 3 times and they didn’t drill on my property

[John Paul]

Who is going to do a surface waiver agreement? The seller is seemingly conveying 100% of the mineral estate the own.

As long as seller conveys all said minerals no surface waiver is needed, you are correct. However in recent years attorneys have turned mineral rights into a large stack of pick em up sticks, literally. Severing surface with rights of ingress and egress, executive rights (rights to negotiate a lease) and or (surface) depth clauses, water, coal lignite, rights of surface operations on and on.

That being said on the State Mineral Addendum if owner reserves any portion of owned minerals, the very next line is the option or negotiated point to waive all surface rights. I was just stating if it is unknown how much he owns and or any reservation happens please make sure they waive the surface rights.

Thats all I was trying to say, OP enjoy your new property!

[Pineywoods]

I'd be thrilled getting 50%. Its rare to get any these days.

This. It is very rare to see anyone let go of any percentage of mineral rights nowadays.

[Fmjag64]

I'd be thrilled getting 50%. Its rare to get any these days.

^^^ This

[BrianL]

I'd be thrilled getting 50%. Its rare to get any these days.

This, and hope they put so many dang oil wells that you can throw a rock between them!

[bphillips]

99% chance that land is leased by an operator already. If it’s leased it doesn’t matter how much conveys with the sale they can still drill their lease.

How big is the place? If it’s small it’s likely the drilling wouldn’t be on your surface anyway but likely just under you


Also IMO look for the Eagleford drilling to increase with this new administration once oil prices drive up