Arizona Mineral Owner's Subordination (of Rights to Make Use of Surface Estate)
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FAQ
In Texas, the mineral lessee has the implied right to use the surface estate for exploring and producing minerals. Such mineral rights are superior to the right of the surface owner to the extent that they are reasonably necessary for the develop- ment of the mineral property.
The surface estate includes everything above ground, such as the land itself, trees, and buildings. On the other hand, the mineral estate refers to the rights to any resources that may be found below ground, such as oil, gas, and minerals.
A subordination agreement is one where the lending party agrees to assign the pre-existing lien a lower priority to a subsequent oil and gas lease. As a result, it is as if the lease had been executed and recorded prior to the lien.
In many states, the owners of the land are not necessarily the owners of the minerals. When the surface and subsurface (mineral) estates are owned by different parties, they are referred to as split estate or severed estate lands.
Mineral rights can be obtained on State or Federal lands that are open to mineral entry. Mining claims, leases, and mineral material sales apply to Federal Lands. Exploration permits, mineal and material leases apply to Arizona State Trust Land.
The term severed mineral rights refers to a state of title to a given parcel of land in which the mineral estate is owned by a party other than the party that is the owner of the surface estate ? in other words, the mineral estate has been severed from the surface estate.
Laws. The federal law governing locatable minerals is the Mining Law of 1872 (), which declared all valuable mineral deposits in land belonging to the United States to be free and open to exploration and purchase.