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12-11-2013, 04:32 PM #1
Property and mineral rights
I have some questions on mineral rights.
How many of you that own hunting land DO NOT own the mineral rights?
Have you had the mineral owner come to do work? What all can they do without landowner permission? set up easements? etc
I'm not liking the sound of mineral rights owners, feels like if you do not own mineral rights, all you own is the right to pay taxes on a piece of land other people can use as they please.
I experienced first hand in East Texas how mineral owners can ruin hunting grounds and am wondering if I should consider only looking at properties that come with the minerals.
Last edited by BassBlaster; 12-11-2013 at 04:35 PM.sometimes you think you have true love and then you catch the early flight home from San Diego
12-11-2013, 04:49 PM #2
As a realtor and if looking for a large qty of land, then I would make sure that it has mineral rights. I have heard of some horror stories.
12-11-2013, 04:50 PM #3
depending on where you are it can be difficult to acquire 100% of the minerals. You at least want the executive rights.Please subscribe to my YouTube channel: http://www.youtube.com/channel/UCuuWtY_LX6qnPWXHueRC-hQ
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12-11-2013, 04:54 PM #4
My parents own 180 acre out in Caldwell, 30 mins from College Station. When they bought that property, the mining right didn't come with it. It was still belonged the the previous owner. Apparently surveyor went out on the property 4-5 years ago and found that there's an oil deposit under it. The company then write the guy a $1 mil check the second day in return for right to set up a little oil drill there, the contract is good for 10 years. After 10 year is up, they will come back and survey the land again. If the drill can still pump out oil, then they would offer the owner another check.
Along with the drill, the company set up some storage tanks and satellite system with lots of computer. An oil tank comes out from time to time to collect crude oil. I guess they can monitor things from afar. The built road and gates from outside to the drilling site, lucky for use the drill site is right off the main road so there is not much intervention with the land.
12-11-2013, 05:52 PM #5
Is the value of the land they are using for 10 years deducted from your property tax? sounds like they took up a few surface acres with the drill,pods, monitoring equipment etc
Last edited by BassBlaster; 12-11-2013 at 05:56 PM.sometimes you think you have true love and then you catch the early flight home from San Diego
12-11-2013, 05:54 PM #6
Thanks for the responses. Another question, are there areas where the mineral rights are worthless and easy to acquire? What parts of the state would that besometimes you think you have true love and then you catch the early flight home from San Diego
12-11-2013, 05:54 PM #7
Do mineral owners pay a property tax?sometimes you think you have true love and then you catch the early flight home from San Diego
12-11-2013, 06:41 PM #8
hill country and west, also central tx areas west of i-35 are not hot mineral areas right now. Get a place where you own at lease a portion of the mins. Make sure you have the executive rights or worst case scenario make sure there is at least a surface waiver if you end up liking a place where the minerals have all been deeded out
12-12-2013, 12:01 AM #9
In Texas, the mineral estate is is dominant estate. The surface estate is the servient estate meaning that the mineral owner has the right to enter onto the land and utilize the surface estate in order to produce minerals from the property. They do not need the surface estate owners permission to come onto the land in order to "capture" the minerals. They have this right by law.
Executive rights is a subset of rights that one or more of the mineral estate owners can have. It is only the right to enter into an oil and gas lease with a producer. If you do not own the mineral rights, you cannot hold the executive rights.
Since the mineral estate is an interest in real property, it is subject to ad valorem (property) taxes. The surface estate, also an interest in real property, is also subject to property taxes. If there is no oil or gas production on the land, the mineral estate has little or no value and therefore would not normally bear much, if any, property tax. If there is production on the land, the value of the mineral estate obviously increases and therefore will be assessed more in property tax. Mineral estate owner and/or lessee/producer will be subject to severance taxes once the oil and gas is "severed" or pulled out of the ground.
12-12-2013, 08:35 AM #10
I would definitely want the mineral rights. I have a ranch in Blanco and I was able to get 100% of the mineral rights. I'm sure South Texas would be next to impossible to get any mineral rights with all the work going on down there. I would think most places in the hill country it would be feasible to obtain the mineral rights. You may also may want to check with the county commissioner's office to see if anything else is in the works for the property you are looking at. Entities with the power of eminent domain can wreak havoc on your property as well. I would think the county commissioner office would know if there is something planned for the property. When I bought my ranch one of the big things was transmission lines cutting across property from all the wind farms. Not sure if that is as much of a concern now.
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