Oil wells have long dotted the landscape of rural Texas, but they're now becoming more prevalent...
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As a first-time homebuyer in the Dallas/Fort Worth area, I thought I had very carefully prepared myself for all that the process would involve, including gathering income and financial documentation, qualifying for a mortgage, arranging for a thorough inspection, evaluating needs and desires from a home and finding a reputable agent to represent my interests. One area I never considered, however, was the issue of mineral rights. To be perfectly honest, although I'd heard the term, I'd never given consideration to what it actually meant. But that all changed in the middle of my home buying process - and I'd like to share with you the knowledge I've gained through extensive research I completed to protect my own rights and the rights I would possess as a soon-to-be homeowner.
According to property law, two different forms of rights exist in any real property: surface rights and mineral rights. Surface rights refer to any structure erected above the surface or sub-surface structures that do not exceed a certain depth, as well as rights to use all surface property surrounding structures in accordance with zoning ordinances. Mineral rights refer to mineral substances below a certain depth and the way in which they are preserved, explored or extracted. These mineral substances can include natural gas, oil, or any other substance in common use today that can be mined or otherwise extracted from below the surface. Local laws set the depth below which surface rights terminate and mineral rights exist. This issue is especially relevant to residents of the Dallas/Fort Worth area, as sections of the Barnett Shale running under Fort Worth have been found to hold large stores of precious minerals, and oil and gas companies are moving quickly to act on those stores.
According to property law, two different forms of rights exist in any real property: surface rights and mineral rights. Surface rights refer to any structure erected above the surface or sub-surface structures that do not exceed a certain depth, as well as rights to use all surface property surrounding structures in accordance with zoning ordinances. Mineral rights refer to mineral substances below a certain depth and the way in which they are preserved, explored or extracted. These mineral substances can include natural gas, oil, or any other substance in common use today that can be mined or otherwise extracted from below the surface. Local laws set the depth below which surface rights terminate and mineral rights exist. This issue is especially relevant to residents of the Dallas/Fort Worth area, as sections of the Barnett Shale running under Fort Worth have been found to hold large stores of precious minerals, and oil and gas companies are moving quickly to act on those stores.
Comments
hdwebsitesdotbiz
(Guest)
(Guest)
08/17/2009
Great INFO!!! Very Informative. That other guest was really rude. (thumbs down)
C. Nadeau
(Guest)
(Guest)
04/20/2009
Thanks for the very informative expose, I am in the process of buying a home myself in Grapevine, TX and will demand to have the minerals rights. Since you seems to be very knowlegeble, I did see that you mentioned that once the mineral right have been leased to a company the company have them for the period of the lease. Now is that contract no longer valid once the seller agree to sell the right to me along with the propety? I find that anoying to know that the former owner would receive royaltyies from my property. Is there a way to void that contract with the oil company and re=negociate since I will now own the house. Thank you so much for you helpful post.
Because I very much believe in free speech, I will not delete your comment. I would advise you, however, to think twice before you again rebuke a writer using insults and derisive speech, and to ensure that you have your facts straight before you tell other people that they are wrong. I would also advise you to back up your claims and allegations with actual fact or by creating some basis for your having an opinion. Because you have not done so, there is no reason to think that you know anything about this topic.
Best wishes,
Tiffany A. Aller
Furthermore, home value per local appraisal districts are also impacted because of mineral rights. Our total property value has increased by 7% - an increase that is directly attributed to and taxed as mineral rights that we lease to Chesapeake oil. In addition, other groups - including real estate professional associations - have used my article as a way of advising both potential buyers and sellers. That, in itself, shows the value of the information presented, as those who have used my article are true experts in the real estate field.
Mr. Wilson - Unfortunately, you are the one who is uneducated. First, when trying to prove a point, it is more than just bad form to call names. It is damaging to any credibility you might have earned. Second, you obviously are not familiar with the north Texas real estate market and the affect of mineral rights on housing prices. My knowledge is based not only on first hand experience of the process of homebuying when mineral rights were at stake, but also on extensively studying multiple studies conducted by organizations including Texas A&M University and several legal advocacy groups. The bank did not grant our loan until it was confirmed that mineral rights were attached, as the appraiser indicated that resale value would be hurt unless both surface and mineral rights remained intact.
John Wilson
(Guest)
(Guest)
03/01/2009
You're an idiot and uneducated. Severing mineral rights from surface rights is commonly done, and has essentially no effect on your home price. When you got your loan for your house you'll find that neither your bank nor your appraisal gave any consideration to whether you do or do not have mineral rights. Don't scare people with your misinformation and nonsense!
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