Disputes between the mineral rights owner and the surface rights owner usually arise at the time of mineral extraction. These activities can require use of the surface and damage the surface owner’s enjoyment of the property. Here is where the wording of the mineral rights agreement or lease agreement becomes very important. The agreement may…

In addition to financial matters, a lease or sales contract can do more than simply specify the amounts paid to the owner. It can also contain language that protects the owner’s property and way of life while exploration, mining, drilling and production take place. The contract can set guidelines that protect the owner’s buildings, roads,…

A short story…. Two men were at the hardware store and in walks a guy who asks… “Have you leased your mineral rights yet? I’ll pay you $500 an acre – and write your check this morning.” One man grabbed the check and ran straight to the bar. The other man grabbed the lease and…

Below the surface, oil and gas have the ability to move through the rock. They can travel through tiny pore spaces – such as between the grains of sand in sandstone or through the tiny openings created by fractures. This mobility allows a well to drain oil or gas from adjacent lands. So, a well…

Mineral rights often include the rights to any oil and natural gas that exist beneath a property. The rights to these commodities can be sold or leased to others. In most cases, oil and gas rights are leased. The lessee is usually uncertain if oil or gas will be found, so they generally prefer to…

Sometimes a mining company does not want to purchase a property because they are uncertain of the type, amount or quality of minerals that exist there. In these situations the mining company will lease the mineral rights or a portion of those rights. A lease is an agreement that gives the mining company the right…

Buying/selling a coal seam is much more complex than buying/selling a car. When you buy a car you simply pay for it, file a title transfer with the government and drive the car home. When the car is worn out, it goes to the junk yard and the only thing that remains is a memory.…

“I’ll pay you $100,000 for the coal beneath your property!” This type of transaction has happened many times. The fee simple owner may not have the interest or the ability to produce the coal beneath his property but a coal company does. In this type of transaction, the owner wants to sell the coal but retain possession…

Basic information about mineral, surface, oil and gas rights. Fee Simple – Complete Ownership In most countries of the world, all mineral resources belong to the government. This includes all valuable rocks, minerals, oil and gas found on or within the Earth. Organizations or individuals in those countries cannot legally extract and sell any mineral commodity without first obtaining…