Many people assume that owning land means controlling everything above and below the surface. However, mineral rights and surface rights are separate legal interests, and understanding their distinction is crucial for landowners, investors, and energy developers.

This article breaks down the key differences, explains how they can be separated, and explores the legal and financial implications for property owners.

Key Takeaways

• Mineral rights grant ownership of underground resources like oil, gas, and minerals, while surface rights control land use above ground.

• Mineral rights are the dominant estate, meaning their owner has the legal right to access the surface to extract resources, even without the surface owner's consent.

• Surface owners must reasonably accommodate mineral exploration, but the goal is to find solutions that work for all parties while ensuring fair compensation.

What Are Mineral Rights?

Mineral rights allow the owner to explore, extract, and sell subsurface resources such as oil, gas, coal, and metals. Owners can lease or sell these rights to energy companies, often receiving royalty payments based on extracted resources.

Types of Mineral Rights Ownership

1. Fee Simple Estate: The owner holds both mineral and surface rights.

2. Severed or Split Estate: Mineral and surface rights are owned separately.

3. Leased Mineral Rights: The mineral owner leases rights to an energy company.

What Are Surface Rights?

Surface rights govern the visible, usable portion of the land, including farming, building structures, and development. However, if mineral rights are severed, the surface owner may have limited control over how the land is used when resource extraction occurs.

Minerals as the Dominant Estate
In many jurisdictions, mineral rights take precedence over surface rights. This means that even if you own the land, a mineral rights holder or leaseholder can access your property to extract resources.

However, this does not mean surface owners have no rights. Most states require that mineral owners reasonably accommodate surface owners, meaning they must work to minimize disruptions and compensate landowners fairly for any impact on their property.

Severed Rights & Common Issues

When mineral and surface rights are owned separately, conflicts can arise, including:

• Drilling or mining on private land without surface owner approval.

• Limited land use options due to underground resource extraction.

• Compensation disputes for surface damage.

Surface Use Agreements

To mitigate conflicts, Surface Use Agreements (SUAs) outline:

• Where drilling, pipelines, or mining can occur.

• Compensation for surface owners.

• Reclamation efforts after extraction.

By working together, mineral owners, surface owners, and energy companies can find solutions that benefit all parties, ensuring fair compensation while allowing responsible resource development.

How to Verify Ownership

To determine if you own both surface and mineral rights:

1. Check the property deed for mineral ownership details.

2. Review county land records or conduct a title search.

3. Consult a land or mineral rights attorney for clarity.

Why This Matters

For Landowners

• If you only own surface rights, you may have no control over resource extraction on your land.

• You are entitled to reasonable accommodation and fair compensation for any disturbances.

• Selling or leasing mineral rights can generate passive income, but it’s important to weigh the long-term impact.

For Investors & Energy Companies

• Clear ownership rights are essential to avoid disputes.

• Mineral rights can be a valuable asset that generates royalties and lease payments.

• Collaboration with surface owners leads to smoother operations and fewer legal challenges.

Final Thoughts

Since mineral rights are the dominant estate, understanding the implications of severed ownership is essential. Landowners must reasonably accommodate mineral exploration, but the goal should always be collaboration and fair compensation for all parties involved. Whether you're a landowner considering a sale, an investor evaluating opportunities, or a developer navigating access issues, the right strategy can protect your interests.

Want to learn more? Contact Peoples Company Energy Management to discuss how we can help you navigate mineral and surface rights for your property.