Owning land in Texas can mean more than just having control over what happens on the surface. Beneath that ground may lie valuable minerals such as oil, gas, or other natural resources that carry their own set of rights and responsibilities. Many landowners do not realize that surface and mineral rights can exist separately, which can deeply affect what they actually own.
A mineral owner in Texas holds the legal power to explore, lease, and benefit from the minerals beneath their property. Understanding these rights can help clarify how ownership works and what opportunities or limits come with it. The discussion that follows explains the main rights tied to mineral ownership, how they interact with surface use, and what choices an owner has when managing or transferring them.
Right to explore and develop minerals beneath the land
Mineral rights ownership in Texas have the legal authority to explore and produce minerals located under their property. This right includes access to oil, gas, and other valuable substances found below the surface. The mineral owner may exercise these rights directly or lease them to an operator who conducts the work.
Because Texas law treats the mineral estate as dominant, the mineral owner may use the surface as needed to reach and extract minerals. However, they must act reasonably and avoid unnecessary damage to the surface estate. The exact limits depend on the deed language and any negotiated agreements.
Exploration often begins with surveys and drilling to locate resources. Once production starts, the owner can profit from the minerals extracted or from royalties under a lease. These rights carry both opportunities and responsibilities that affect how the land above and below is used.
Entitlement to receive royalties from mineral production
A mineral owner in Texas gains the right to collect royalties once a company extracts oil, gas, or other minerals from the property. These royalties represent a share of the revenue from production and depend on the terms of the lease agreement made with the operator. The royalty rate usually appears as a percentage, which determines how much income the owner receives.
The payment amount also depends on factors such as production volume, commodity prices, and the number of acres included in the lease. If multiple owners hold interests in the same property, each person receives a proportionate share based on their ownership percentage.
Texas law treats these payments as private income, and operators must account for them accurately. Most mineral owners receive payments monthly once production begins and continues as long as wells produce in paying quantities. Therefore, clear lease terms and accurate recordkeeping help protect an owner’s right to fair compensation.
Ability to lease mineral rights to third parties
A mineral owner in Texas holds the right to lease their mineral interests to another party. This lease allows an energy company, known as the lessee, to explore for and extract oil, gas, or other minerals under agreed terms. The owner, called the lessor, keeps ownership of the minerals but grants permission for their development.
The lease usually includes details such as payment terms, how long the lease lasts, and what happens if production begins. Common payments include a signing bonus, royalties from production, and sometimes delay rentals if drilling does not start right away. Each of these terms directly affects the income a mineral owner receives.
A mineral owner also decides whether to accept, reject, or negotiate lease offers. Many seek professional advice to confirm that the agreement protects their interests. Clear understanding of the contract helps avoid confusion later and supports fair compensation for the resources produced.
Priority of mineral rights over surface rights (dominant estate)
Texas law treats the mineral estate as the dominant estate. This means the mineral owner has priority over the surface owner when both rights are separately owned. The mineral estate carries the right to explore, drill, and produce oil, gas, or other minerals beneath the land.
However, this priority does not give unlimited control. The mineral owner must use the surface in a way that is reasonably necessary to extract minerals. They cannot cause unnecessary damage or prevent the surface owner from using the land for normal purposes.
State law expects mineral operators to act responsibly. They must follow environmental and safety rules, and they may need to compensate surface owners for losses or damages. In practice, this balance allows mineral development while protecting the surface owner’s interests as much as possible.
This rule reflects a long-standing principle in Texas property law that favors mineral production while maintaining fair treatment of surface owners.
Right to grant or sell mineral rights separately from surface ownership
In Texas, a landowner may divide ownership of land into surface rights and mineral rights. The surface estate covers land use above ground, while the mineral estate includes the resources below it. This legal separation allows a person to keep one part and transfer the other.
A mineral deed creates this split. Once executed, the mineral estate begins its own chain of title that is independent from the surface. The mineral owner may then sell, lease, or retain those rights without affecting ownership of the surface property.
This division often occurs through sale or inheritance. For example, an owner might keep the home and fields but transfer the subsurface rights to another party. The new mineral owner gains authority to explore or extract resources as state law and lease terms allow.
Understanding this right matters because it defines control over potential income from oil, gas, or other minerals while separating it from surface ownership.
Conclusion
Texas law treats mineral ownership as a separate property right, which means a person may own the surface, the minerals, or both. Each estate carries specific powers and duties that can affect how a property is used and developed.
A mineral owner has the right to explore, lease, and produce oil, gas, or other minerals under the land. However, this right must respect existing contracts and surface-use limits. Clear title records help avoid disputes and confirm true ownership.
Understanding the difference between surface and mineral estates allows owners to make informed choices. Whether they plan to lease, sell, or retain their mineral interests, accurate information and legal guidance protect their position.
In short, mineral rights give owners meaningful control over underground resources. Knowing these rights allows them to act with confidence and preserve the long-term value of their property.
