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MINERALS, SURFACE RIGHTS, ROYALTY PAYMENTS

More and more, this is becoming an issue.  Our TAR promulgated Commercial contracts have language that transfers the sellers interest in any minerals.  Sellers are wanting to retain any rights for future exploration or potentially rich producing sites. 

This article is interesting and points out what can and cannot be reserved or conveyed.

Erik

MINERALS, SURFACE RIGHTS, ROYALTY PAYMENTS

COLLEGE STATION (Real Estate Center) - An oil and gas technical report that’s been around since 1991 has been updated.

Minerals, Surface Rights and Royalty Payments by Real Estate Center Attorney Judon Fambrough updates court rulings regarding what are and are not minerals.

The present status of Texas law is that the term minerals or oil, gas and other minerals includes, as a matter of law, oil, gas and uranium. Sulphur and salt also are considered minerals.

Limestone, caliche, surface shale, building stones, sand, gravel and water cannot be reserved or conveyed. Coal, lignite and iron ore on or within 200 feet of the surface are not included if production would destroy or deplete the surface.

Erik Johnson, CCIM
Paul Johnson & Associates
4633 South 14th
Abilene, TX 79605
325 698-5661 office
325 692-8508 fax
325 439-0186 mobile
 
http://www.pauljohnsonrealtors.com

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