Mineral
Rights
It’s possible that you or someone you know has
already received a letter in the mail regarding
leasing your minerals, or you may soon. If so,
you may have questions. DFW TexStar Land Services,
L.L.C. is here to help North Texans like you get
the most of their mineral ownership opportunities
and the incredible potential of the Barnett Shale
natural gas play. And we believe that being well
informed about the details of mineral rights,
surface rights and the leasing process is the
most important first step. Just another way we’re
working to make sure that, together, we’re Helping
Move America’s Resources!
Q. What exactly are mineral
rights?
A. A mineral right is the legal ownership and/or
right to extract a mineral (such as natural gas)
from beneath a property. In Texas, mineral rights
are treated as actual property and can be sold
or leased. However, surface rights and mineral
rights are not the same thing. It is possible
to own the surface rights to a property (e.g.
the land on which your home is built) without
owning the mineral rights.
Q. How do I know
if I own mineral rights on my property?
A. Owning a piece of property does not automatically
mean you own the mineral rights. There are many
cases where the original owner sold the surface
rights, but retained the mineral rights. A search
of your deed or property title can disclose whether
you own your minerals. If your current deed doesn’t
specifically discuss minerals, you may need to
look back through deeds of previous owners.
Q. What is a mineral
lease?
A. A mineral lease is a binding contract that
gives an energy company the right to extract and
produce the mineral owner’s natural gas. Typically,
the owner of the mineral rights is paid a sum
of money (the “bonus”) when such a lease is signed.
Then, the mineral owner will receive a recurring
payment based on the percentage of a well’s production
and on the amount the operating company is paid
for the natural gas (the “royalty”).
Q. What’s the difference
between leasing and selling my mineral rights?
A. Leasing is a revenue-sharing arrangement where
you share in the proceeds of any minerals produced
from your property for as long as the lease is
in effect. Selling your minerals is a different
transaction: you permanently forfeit all mineral/subsurface
rights to the purchaser in exchange for a one-time
payment.
Q. How do I begin
the process?
A. Getting started is easy. If you own property
in the Barnett Shale, send us an email with your
property address to leasing@dfwtexstar.net. A
representative will contact you soon.
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