Knowing the Extent of Your Ownership When Selling Your Mineral Rights in Texas


Texas is one of the many states that are rich in mineral resources. The land area around Texas was once a part of the ancient pre-Columbian territory where about 16 species of dinosaurs once roamed. Aside from that, the state also has a massive wealth of natural gas, coal, metal ore, iron and copper, sand, and gravel.

These precious resources have become properties of landowners whose houses and owned areas are littered with such wealth. If you are selling your mineral rights in Texas, there are several processes you need to understand before getting into an agreement.

Defining your mineral rights under the Texas law

The state of Texas has a clear definition of mineral rights under the Texas Statutes and Natural Resources Code. Such code covers the concrete definition and what each party must consider legal and binding based on the contract terms.

So, for example, before extraction happens, you must ensure that you are the legal owner of the mineral resources. You must also possess the deeds and land titles for the validity of your claims.

Texas grants ownership to the person who shows legal documents, including owning the mineral rights. As such, the deed must explicitly state “fee simple,” meaning you are the guaranteed owner. However, there are legalities to some of the words, including “subject to” and “less and except.”

In most cases, when parties question the ownership of an area, the property is not fully accounted as a person’s entitlement might be less than the total area, or you may not be the outright owner. Seeking the help of mineral rights experts can help verify the extent of your ownership and who the people legally entitled to sell their land share are.

Your surface rights and knowing the natural resources you are selling

Owning a mineral source is not the same as extracting minerals from the surface of the earth. Though you may hold the exact area where a mineral is mined, it does not have equal value as when it is located underground.

So given the fact that selling entails the agreed value, understanding the market price point always counts to get the best deal. Signed agreements typically cover land lease or the possibilities of placing your mineral rights in the market at some point.

But if you are decided on selling your mineral rights in Texas, there are options to get a lump sum payment or combine your profits with monetary value and a portion of the extracted mineral.

Considering the aid of a legal expert will help you define the extent of payment and what options are available for you. This may include getting access to the property surface, renewal of rentals, your royalties, extensions, and delayed rentals.

Looking for the right partner

Looking for the right Texas partner who can help manage your mineral and oil rightsin the state is a crucial part of getting the upper hand to a deal. Leasing or selling your mineral rights have their inherent benefits for a landowner including:

  • Securing your retirement
  • Using the funds for personal needs, including paying off debts and medical bills
  • Exploiting the opportunities of getting higher capital gains and low taxations

Receiving a better offer from mining companies around the country comes from getting the assistance of sourcing organizations that can partner you with the best miners around the country.