Mineral Rights

[CBrown]

I have a question for you guys who deal in land and timber. I have found a small piece of land (around 50 acres) that I am really interested in buying. The only thing I am worried about is that the mineral rights will be maintained by the seller. What exactley does this mean? Should this lower the cost of the land considerably? What rights does this give the guy who has the mineral rights, I mean can he come into my property in 20 years and start doing exploratory drilling wherever he wants? Is this a common transaction? Just want to get some your thoughts on this, thanks.

[MudHog]

He may not be allowed to come onto your property to drill, but if the reserve is under you, the mineral rights owner would get the royalties. He can drill off property and still tap into the reserve.

Your basically buying the topsoil. I'm sure there is an exact number on depth of the property, and retaining mineral rights is pretty common.

[Hambone]

[Agua]

My recollection of it is what Hambone said. The mineral owner, or his lessee, has the right to use the surface as an incident to exercise of the right to remove minerals.

[hillhunter]

Or if it is a mineral such as lime.... he has the right to remove the entire surface to get to it.

[MudHog]

which is why I said "may not".


It would be hard pressed to buy land knowing that the mineral owner can at any point in time come onto your "surface" property. I'm sure if you go through everything and buy the land, and later on tell the mineral owner he can't come onto the property, there is nothing stopping him from doing so.

[Hambone]

It depends on the presence of minerals in the area. There are parts of Mississippi where land routinely trades without a mineral search and without any problem, because there are no known minerals in the area. In other regions, it would be insanity to buy property without being certain of mineral ownership.

But, as I said before, the mineral owner has the right to use the surface in extracting his minerals.

[woundedduck]

Odds are that it will never be drilled, anyway, but just in case.....he is reserving the mineral rights. You do not have to give him the right of ingress and egress on your property, if you end up buying it. This needs to be stated in your conveyance (deed). And it doesn't lower the cost at all, unless you were looking to buy the land to drill.

[TODO]

I delve in real estate. Assuming this property is in North Mississippi there is likely no value to the mineral rights, since generally no minerals are there to be mined. In that case with no minerals to be had, there likely wont be any decrease in value because of it. I still would want them myself thou. Never know when you might become the next Jed Clampet.

Now if there are minerals in the area, say like in texas where they drill oil and gas, the value of the property is the minerals, the topsoil is just holding it together. Got a relative that bought a badazz ranch out there about 10 years ago for $100 an acre. Its got dozens of gas wells on it. He has no mineral rights, thats why it was so cheap.

[Hambone]

[ducman77]

Do a search about the North Dakota mineral rights not being sold with the land it will make you sick. They are right if you buy the land without the mineral rights they can come on your property and remove the surface looking for mineral with out your permission.

[CBrown]

This land is in Copiah County. So after reading this I would be crazy to buy land without the mineral rights. Secondly how can someone sale land that they withhold the mineral right on, seems no one in their right mind would buy it. No way I am going to put my work into this land, plant tree's, build a lake and one day a cabin just so someone can come in and strip mine it. Crazy!!

[@work]

I grew up in Jasper county and no one with their right mind sells both the property AND the mineral rights, especially if there is a history of oil & gas in the immediate area. If by chance you buy the land without the mineral rights, the oil & gas company will have to pay you for any damages, etc. to your property if they come in a explore/drill. They may even have to lease the right to come onto your land but I'm not absolutely sure about this. The good thing about it being only a 50 acre tract is that if they do drill, it can be done from other property within the surrounding area without them having to come onto your land. I cannot imagine that they would be able to come in and mine for limestone, gravel, etc. without your permission, which would pretty much destroy your property. Not saying they cannot do this but would definitely piss me off. Disclaimer: I am not an attorney nor have I ever stayed in a Holiday Inn Express.

[stang67]

In my limited experience, alot of land in SW MS (thick loess region) is sold or for sale without mineral rights. I've heard some brokers say that the seller didn't have mineral rights and had no idea who did.

I'd be curious to hear from some brokers or recent buyers if what I've seen is really the norm.

[1010]