What Are Mineral Rights?
Understanding Ownership Below the Surface
Mineral rights give the owner control over the natural resources found beneath the surface of a piece of land. These resources may include oil, gas, coal, or other minerals. Owning mineral rights means you have the legal ability to sell, lease, or produce those resources.
In the United States, mineral rights are separate from surface rights. You can own the surface of a property without owning the minerals underneath, or vice versa. When the two are owned by different parties, it is known as a split estate, which happens when a severed mineral interest has occurred.
Surface Rights vs. Mineral Rights
- Surface rights apply to the land you can see and use, such as the home, pasture, or farmland.
- Mineral rights apply to the subsurface resources that can be explored and produced.
When an oil or gas company drills a well, they generally need the consent of the mineral rights owner through a lease agreement. In some cases, such as state pooling or integration, a well may still be drilled under state regulations, and the owner is paid according to those terms.
How Mineral Rights Are Created and Transferred
Mineral rights can be created when a landowner sells or transfers ownership of the minerals separately from the surface. This process is called a severance. Once severed, mineral rights can be sold, inherited, or passed down just like any other asset.
If you have inherited mineral rights or recently learned that you may own them, it can be helpful to verify your ownership through county records or past deeds.
How Mineral Rights Generate Income
Mineral rights owners may earn money through:
- Leases, where an oil or gas company pays a bonus to lease the minerals.
- Royalties, which are ongoing payments based on a percentage of production.
- Sales, where an owner sells all or part of their minerals for a lump-sum payment.
Each option has its own benefits depending on your personal situation and financial goals.
How Harbor Energy Can Help
Harbor Energy buys mineral rights and oil and gas royalties across the United States. Whether you are looking to sell all or part of your interest, our team makes the process straightforward, transparent, and fast.
We can help you understand your options and provide a no-obligation offer at no cost to you.
