Severed Mineral Rights in Texas
Severed mineral rights mean that someone other than the surface owner owns the oil, gas and other minerals under the land. Texas treats the mineral estate as dominant, which gives the owner the right to use as much of the surface as is reasonably necessary to produce them, subject to the accommodation doctrine and any agreement. A buyer should find out who owns the minerals, what leases exist and what surface rights are reserved.
How minerals become separate
Mineral rights can be sold, leased or reserved separately from the surface. Many Texas deeds reserve all or part of the minerals to the seller. Once severed, each estate passes separately through sales, wills and inheritance, so ownership can be divided among many people over decades. The surface owner may own none of the minerals, or only a fraction.
The dominant mineral estate
- The mineral owner or lessee may use the surface as reasonably necessary to explore, drill and produce.
- Under the accommodation doctrine, if the surface owner has an existing use and a reasonable alternative method exists for the mineral owner, the mineral owner may have to use it.
- The mineral owner is responsible for negligence and for damage beyond what is reasonably necessary.
- A surface use agreement can set locations, payments and restoration terms.
Mineral interests and royalties
| Interest | What it is |
|---|---|
| Mineral interest | Ownership of the minerals and the right to lease and receive bonus and royalties |
| Royalty interest | A share of production revenue, without operating costs |
| Non-participating royalty interest | A royalty carved out of the minerals, without the right to lease |
| Working interest | The right to develop and the obligation to pay costs, usually held by an operator under a lease |
What buyers should do
- Read the title commitment for mineral reservations and prior leases.
- Order a mineral title search if minerals may have value, since the commitment does not insure them.
- Ask whether the seller will convey any part of the minerals and put it in the contract.
- Ask whether any lease is active or any pooled unit includes the land.
- Check for surface use agreements and pipeline easements.
Why it matters for developers and investors
If you plan to build, farm or subdivide, a mineral owner's right to use the surface can affect your plans, financing and insurance. Lenders often ask about minerals and may require a surface waiver. See land due diligence and deed types and reservations.
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Book Free ConsultationFrequently asked questions
Do I own the minerals under my land?
Only if they were not reserved in your chain of title. Check your deed and a mineral title search.
Can an oil company drill on my land if I own the surface only?
If the mineral owner or lessee has the right to develop, they may use the surface as reasonably necessary, subject to the accommodation doctrine and agreements.
Can I buy back the minerals?
Sometimes, by negotiating with the mineral owner. Many owners are unknown or hard to reach.
Does title insurance cover minerals?
Standard policies typically except them. A mineral policy or separate title work may be needed.