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What is the Process for Transferring Mineral Rights?
What is the Process for Transferring Mineral Rights?
Jeff Chambers avatar
Written by Jeff Chambers
Updated over 2 years ago

Preparing for Transferring Mineral Rights Ownership When transferring mineral rights ownership, it's essential to understand the various transaction processes involved, particularly for oil and gas rights. Here's a step-by-step guide on the procedure:

  1. Confirm the Title to Mineral Rights: Ensure that you have the title to the mineral rights. You can search for title documents at the district registrar's office, check online if the community has a database, or hire a landman to do it on your behalf.

  2. Verify Separation of Rights: While the land that sits on top of the minerals may be in your name, make sure the rights to the minerals have not been separated from the rights to the rest of the land in the past.

  3. Get Legal Assistance: After confirming the transfer rights, get an attorney from a recognized law firm to create a new mineral rights deed transfer document and any other required forms, which you sign to complete the transaction. This document then needs to be filed in the jurisdiction where the property resides.

Methods of Transferring Mineral Rights Ownership

  1. By Deed: A mineral deed needs to be created and registered for transfers of mineral rights ownership by deed. Check with the local government or state recorder of deeds where the land is located for a form for a mineral deed, search online for a mineral deed form, or have a lawyer draft one for you. The deed must be signed in front of a notary and take acceptable identification, such as a driver's license. Copies of the deed will be sent to the person granted the mineral rights after approval.

  2. By Will: Mineral rights may be transferred by will. In the event of death, the right to the minerals passes to the person(s) named as beneficiaries or to the residual surface estate and real estate's beneficiary in the absence of specific heirs. It's advisable to meet a lawyer to review the will and ensure proper procedures are followed. A family holding company can be created to assign the rights to minerals, such as an LLC or partnership, but consult an estate planning attorney as this is a complicated process.

  3. With a Lease: To lease mineral rights to another party, you will need a contract. The lease grants the lessee the right to use the land for drilling a natural gas or oil well, exploit, and produce minerals on the leased tract or parcel of land. The lessee typically pays the mineral owner a bonus and royalties, and the lease should include provisions for rent or other compensation if no minerals are extracted. Consult a local attorney before signing a lease agreement.

Transferring Mineral Rights After Death

  1. Confirm Transfer Procedures: Confirm the transfer procedures with the district registrar where the land and mineral rights are located. Present acceptable identification to prove your relationship to the owner of the minerals.

  2. File Affidavit: After filing the affidavit claiming heirship at the office of the county clerk, contact the oil and gas well operators to learn about the required documents for ownership transfer.

  3. Transfer Ownership: Following the operator's review of the documents and receipt of a transfer of ownership order, ownership will be transferred to the designated person or entity. The new owner will be entitled to receive royalty checks after signing the transfer of ownership order.

Transferring Mineral Rights After Divorce During a divorce, transferring mineral rights as part of a settlement is a straightforward process. Legal aspects are similar to other jointly-held real estate or property, but interpretations of the law may vary depending on the state. Consult a lawyer for assistance.

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