How to Reserve Mineral Rights
If you are selling land which contains minerals such as oil, gas and coal, you may want to hold onto the mineral rights and just sell the surface rights. Most U.S. states allow surface rights to be separated from mineral rights in a sale of land and property. Reserving mineral rights means the owner is selling the land and any buildings on that land, while retaining rights to any minerals lying underground. This is common when selling land which is known to contain valuable minerals.
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Instructions
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Instructions
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Research your state's mineral law to make sure it is legal to separate mineral rights from surface rights in a land and property sale. Mineral laws differ from state to state, for example in Louisiana, mineral and surface rights cannot be severed. If a local attorney is too costly to consult, check with your state's department of natural resources.
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Establish ownership by checking your land deed. If your property is a simple fee estate, it means you own surface rights and subsurface rights, therefore you are able to sell the land and what lies on the land while reserving the mineral rights. If it's not clear from your own land deed document your county courthouse will be able to provide the history of ownership for your property.
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A warranty deed has to be drawn up clearly stating the owner is granting a deed for the surface rights and reserving the mineral rights. This is usually achieved by adding a statement onto a property deed, often after the legal description.
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Make sure the legal document includes all minerals to let the buyer know that you are reserving the right to all different types of minerals lying underground.
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The document must be completed in the presence of a witness, stamped by a notary and then recorded with the county register of deeds.
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Tips & Warnings
Check with your state's office of geology and department of natural resources to gain as much information on the subject beforehand.
References
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