Surface Lease (to Store Materials)

Texas courts have long held that the mineral estate is the dominant estate, and that the mineral owner, or the owner's lessee, has an implied easement to use the surface in a manner that is reasonably necessary to develop the minerals.

The specific provisions of the laws vary from state to state, but drillers are generally allowed to extract minerals from a large area or "pool"--in most states a minimum of 640 acres--if leases have been negotiated for a certain percentage of that land. The company can then harvest gas from the entire area.

Nationally, mineral rights owners can expect anywhere from $100 to $5,000 per acre for their mineral rights lease. The most valuable mineral rights leases are on producing parcels of land that are still expected to hold many more precious minerals.

In states with split ownership laws, land can be sold to only include surface rights. This means that if oil or gas is present under the soil, the landowner will have no legal rights to them.

Surface rights are subservient to mineral rights, which means the owner of a mineral servitude will be able to access and use the surface to extract the minerals from underneath.

When it comes to mineral rights, the standard admonition has long been consistent and emphatic: Avoid selling them. After all, simply owning mineral rights costs you nothing. There are no liability risks, and in most cases, taxes are assessed only on properties that are actively producing oil or gas.

Surface rights are, as the name implies, the rights to the surface area of a piece of land. This includes any structures on the property, as well as the rights to farm the land or exploit aboveground resources such as trees, plants, or water according to local laws and ordinances.

The surface lease is the document used by the operator to legally secure its interest in the surface of the land for the purpose of extracting the oil or gas. A surface lease is required for any above surface structure which typically includes wells, access roads and other oil and gas facilities.

On public land, a mineral surface lease is required granting approval to occupy the location and conduct mining activities. This is in addition to an Ammonite Shell Agreement.