Obtaining Colorado Mineral Rights
The state of Colorado recognizes separate ownership of surface and mineral rights, and will therefore grant distinct ownership of surface and minerals. If you are interested in obtaining mineral rights, you will have to first determine who currently owns the minerals. The steps required to maintain mineral rights depend on whether the land is privately- or federally-owned.
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Split Ownership
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Due to the fact that Colorado recognizes separate ownership of mineral and surface rights, just because someone owns the surface rights does not necessarily mean that he also owns the mineral rights. Surface and mineral interests are created or transferred through private-party contracts.
Determining Ownership
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The owner of surface rights should get a title policy when he purchases those rights. The owner of the mineral rights should be listed on the title policy. If you don't hold the title policy, you can research mineral rights ownership at the county courthouse. Visit the county courthouse in which the property is located. At the courthouse, find the property deed and run the title backwards until you find the mineral reservation. The mineral reservation ownership information can be found in the exceptions section of the title deed.
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Private Party
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If property rights are privately-owned, the mineral rights will have to be purchased from the owner. In order to transfer mineral rights, a private-party contract called a mineral right leasing document is compiled. There are various options available when compiling a mineral lease agreement. Therefore, it is in the best interest of both parties involved in the sale of the mineral rights to seek legal counsel.
Federally-owned
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Mineral rights to federal land can be purchases from the Colorado Bureau of Land Management (BLM). The BLM acts as the leasing agent for mineral rights on all federal land. All leases come with stipulations to protect the environment. Leases can also include specific restrictions, such as limits on seasons when drilling can occur and restrictions on surface occupancy by oil and gas operators. BLM Colorado holds open oil and gas lease sales on the second Thursday of February, May, August, and November. To find out more about lease sales, visit the BLM's website, (see resources) or one of the bureau's field offices.
Warning
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Colorado law realizes the necessity in allowing certain surface rights required to develop a mineral resource. Individuals and companies that have purchased or leased mineral rights are entitled to exercise their property rights to develop the resource. In extracting resources, damage may be done to the property, and many damages take years to show up. In these situations, the mineral leasee may be long gone, leaving the responsibility of the damages in the hands of the surface rights owner.
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References
Resources
- Photo Credit limestone mine image by Alex White from Fotolia.com
