In the United States, surface rights and mineral rights can be separated and sold individually. Owning a piece of land does not automatically mean you also own the rights to the minerals underneath the surface. Determining exactly what you own in West Virginia, Pennsylvania or Ohio can be a complex and time consuming process. At Master Mineral Holdings, we consult with people every day in a variety of situations. Here are some of the differences between surface rights and mineral rights and how they may be separated.
What is the Difference between Owning Surface Rights and Mineral Rights?
The main difference between surface rights and mineral rights is what the owner has control over. Those who own surface rights can dictate what is and isn’t allowed to happen on the surface of the land. Those who own the mineral rights, have a right to extract the mineral resources found below the surface of the land. There are many laws and regulations that govern how and when minerals can be extracted. When one party doesn’t own both the surface and mineral rights, there may be ways to go about extracting the minerals without damaging the surface. There are also specific guidelines and rules set by the interested parties when the mineral and surface rights are separated and sold.
How are Surface Rights and Mineral Rights Separated?
Every piece of land originally included the mineral rights as part of the land in a property conveyance. However, property owners are able to separate the land, or surface rights, from the mineral rights if they choose to do so. There are a couple of ways that surface and mineral rights are separated. They all have to do with how the property is divided and sold and what the interested parties agree to.
1. Selling or transferring the land, but keeping the mineral rights. Including a statement in the deed conveying the land that reserves mineral rights to the seller effectively sells the land to the buyer while the seller retains ownership of the mineral rights.
2. Selling or transferring the mineral rights, but keeping ownership of the actual land. When this happens, the seller gives a separate mineral deed to the buyer of the mineral rights and keeps ownership of the land.
3. Selling or transferring both the surface and mineral rights simultaneously. The various assets of the property can be sold to separate, individual buyers at the same time.
Just like selling a portion of your land, you don’t have to sell all of your mineral rights at once. For example, you can choose to only sell 50% of your mineral rights and retain the other half. Selling a portion of your mineral rights can help you get cash in hand now and you’re still able to hold onto the remaining percentage of mineral rights.
How are Surface Rights and Mineral Rights Separated?
Master Mineral Holdings is dedicated to getting mineral owners in West Virginia, Pennsylvania and Ohio cash in hand as soon as possible. The process starts with a competitive offer from our local experts that takes into account the mineral assets you own. If you have any questions about your minerals, please reach out to our team of mineral experts in the Marcellus Shale Play.