Mineral rights, mining rights, oil rights or drilling rights, are the rights to remove minerals, oil, or sometimes water, that may be contained in and under some land. In jurisdictions that support such rights they may be separate from other rights to the land.
In this type of transaction the owner desires to sell the underground minerals but retain possession and control of the surface. The mining company wants to extract the minerals but does not want to pay an additional price to acquire the property. In many instances, the surface owner does not want to part with the land. So, an agreement is made between the land owner and mining company. The original owner will retain the buildings and rights to the surface, and the mining company will acquire rights to the subsurface. The transaction can involve all mineral commodities (known or unknown) that exist beneath the property or the transaction can be limited to a specific mineral commodity.
Buying mineral rights is much more complex than buying a car. When you buy a car you simply exchange money, file a title transfer with the government and drive the car home. However, when mineral rights are purchased, removal of the mineral is usually deferred. A mining company needs time to acquire a mining permit and schedule its equipment and workforce to commence at the new property.
See also
External links
|
