Major Elements
The five elements of a mineral right are:
- the right to use as much of the surface as is reasonably necessary to access the minerals,
- the right to further convey rights,
- the right to receive bonus consideration,
- the right to receive delay rentals and
- the right to receive royalties.
The owner of a mineral interest may separately convey any or all of the above-listed interests. Minerals may be possessed as a life estate, which does not permit a person to sell them, but merely that they own the minerals so long as they live. After this, the rights revert to a predesignated entity, such as a specific organization or person.
It is possible for mineral right owners to sever and sell oil and gas royalties, while keeping the other mineral rights. In such case, if the oil lease expires, the royalty owner has nothing and the mineral owner still owns the minerals.
Read more about this topic: Mineral Rights
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