Almost every American knows that Texas is the second-largest state in the US when it comes to area and population. However, not a lot of people know that underneath this vast land are abundant, valuable resources composed of mineral deposits.
The lone star state boasts of being one of the largest depositories of minerals. This feature results in unique property ownership that covers Texas mineral rights.
Mineral rights comprise complex laws and processes. These often lead to confusion among current landowners who want to sell their rights. To provide clarity and essential guidance, here are the common questions about Texas mineral rights.
- What are Mineral Rights in Texas?
Having meaning rights means that a person or entity owns the minerals found beneath his property’s surface. According to Texas law, mineral rights include gas, salt, oil, sulfur, and uranium. However, other minerals can still be included as long as they are stipulated in an agreement.
Bear in mind that when a person or entity owns the mineral rights of a specific property, he will be given access to the property’s surface, It means that they can use any reasonable and legal method to locate and mine the minerals underneath. These include building roads, wells, dig trenches, and other projects. These activities may impede the surface rights owner to utilize their land as they wish.
- What are Surface Rights?
The right to control the surface of the land is referred to as Surface Rights. Structures that are already on the surface also fall under this category of rights. Commonly, property sale transactions include both surface rights and Texas mineral rights.
There is an exception to this practice, though. It occurs when the seller stipulates that they will retain their mineral rights and only sell their surface rights.
On the other hand, a landowner can opt to sell the mineral rights to his property while keeping the surface rights.
- What Texas Law Protects Property Owners?
The State of Texas Landowner’s Bill of Rights is a law that protects the interests of property owners. For example, if a person or an entity is offering to buy a property, the landowner can demand fair and updated compensation for the transaction.
The bill also stipulates that the entity who wishes to acquire your property should be able to show a written appraisal from a certified appraiser. It must include details of the compensation that you will receive for your property.
- What is the Effect of Having Mineral Rights on Taxes Due?
Texas law dictates that the state may tax Texas mineral rights owners on the minerals mined from their land. On the other hand, surface rights owners who receive a royalty from the sale of the minerals will also need to pay taxes. Damages to the land will also be considered in computing for property tax.
Selling mineral rights in Texas may entail a challenging process, but the fruits of the sale are rewarding. The first thing you need to do is to educate yourself on the basics of mineral rights. Also, it would be best to seek the help of a mineral rights consultant for transparency and ease in the transactions.