Did you know that there are two different titles to a single piece of land? Yes, you read that right.
In the United States, a landowner holds two titles- one the ownership to the surface, and two the minerals found within.
To put this into perspective, when someone buys a piece of land, they may use it for agriculture, construction, or any other use they seem fit. However, by default, the owner is also entitled to the minerals found beneath the surface. It includes fossil fuels like natural gas, coal, metals, etc.
That being said, it is noteworthy that the owners can sell their rights, individually. And likewise, can buy the same, if need be.
What Are Land Rights?
In simple terms, land rights establish the purpose of use for a piece of property. It is noteworthy that landowners and lessees have different rights to the land.
For example, the owner has the right to modify or change any structure on the property. But, the lessee may only have the rights to make minor or no changes at all.
What Are Mineral Rights?
Generally speaking, the rights to exploit a piece of land to mine the minerals.
Well, this definition is incomplete in several ways. For example, mineral rights vary from state to state. Besides, the landowner might not have inherited the rights to the minerals beneath.
It is usually advised to have a thorough check on the property history. Notably, the history of land ownership and its succession, along with the associated rights. After making out whether the previous owners have sold the mineral rights of the land, it would be easier to understand what to do with the minerals beneath.
What to Do If You Find Mineral Reserves?
Of course, the first thing you ought to be doing when mineral reserves are found on your land is to investigate. Entrepreneur Adam Ferrari explains that you need to ensure that you own the rights to the minerals found on your property. As mentioned here, https://ideamensch.com/adam-ferrari/, mineral rights would authorize the holder to exploit the mineral reserves for personal gains. As already mentioned, you can use public directories to investigate the conveyance of mineral rights on your property.
Apart from knowing the rights to the minerals, you ought to know the size of the reserve or the deposit. Usually, experienced geologists are needed for the task.
Once you’re done with all these preliminary investigations, you need to know the worth of your reserves. Ideally, it would be foolhardy to extract the minerals on your own, for there are several tasks involved.
On the other hand, you can choose to lease out or convey the mineral rights to a company or an individual. And you can also expect a royalty for the minerals that are extracted from your land.
The company would use the minerals for industrial and commercial purposes, while you receive the royalty on the sales. It’s a win-win situation for both.
Mineral rights and land ownership is a complicated issue. However, with the right knowledge and skills, you can benefit from the reserves found on your property. Regardless of whether you own rights to them or not.