Nearly all of the world’s nations prohibit companies or individual citizens from extracting mineral content from land without the government giving explicit permission. In these countries, the government owns all the minerals. The United States is one of the few nations in the world that grants individual citizens and enterprises mineral rights.
The qualifications for being deemed a mineral can be different depending on the area of the United States. Metal ores, gemstones, oil, limestone, coal, sodium chloride, and natural gas are just some of the common resources that are commonly seen as minerals.
Difference Between Surface Rights and Mineral Rights
Property owners with surface rights are able to develop or sell an area of land above the subsurface. Surface rights owners can burrow into the subsurface to build foundations or install piping, but they are not permitted to extract and exploit minerals from the soil.
The difference between surface rights and minerals rights makes it possible for multiple individuals or entities to have ownership over one parcel of land. If a property owner has a useful mineral below the surface of his or her land but does not have the capacity or desire to conduct an excavation, the mineral rights can be sold to a professional mining company that can handle the process. The mining company will have the right to dig for minerals and exploit what they find for their own purposes, while the property owner will still have ownership of everything above the subsurface, including the building.
Purchasing Mineral Rights
The buying and selling of mineral rights can become a complicated process for those involved. Once mineral rights are sold, the new mineral owner has the right to conduct excavations on the property. The surface rights owner and all subsequent surface rights owners will have to deal with whatever nuisance the mineral extraction may cause. Typically, mining companies schedule their mineral extractions years ahead, with many companies buying properties and holding them as mineral reserves.
Buyers who are interested in purchasing property in regions with potential for mineral extraction should make sure that they will be gaining fee simple ownership of the property, which will afford both mineral and surface rights. Without this prior knowledge, a purchaser may close a deal hoping to exploit minerals under their land and end up being blocked from doing so by the actual surface rights owner. A buyer may be able to utilize a property’s chain of title to view prior owners and review transactions that include the exchange of mineral rights, and any real estate purchaser interested in obtaining mineral rights should confer with a lawyer who can help determine whether or not the seller actually has ownership of the property’s mineral content. Mineral rights are often recorded separately from surface rights, so it is important for interested buyers and their counsel to do their due diligence to ensure that they have accurate and up-to-date information.
