Depletion refers to a non-cash deduction that accounts for the reduction in value of an income-generating natural resource, such as minerals, oil, gas, or timber.
Divided interest refers to partial ownership interest in a property, where rights or interests are split among different parties.
A Mineral Deed is a legal document used to transfer mineral rights from one party to another. This can include the right to explore, extract, and sell the minerals found beneath the surface of a property. Mineral Deeds can significantly impact property rights, land value, and taxation.
A Mineral Lease is an agreement that grants the lessee the right to excavate and sell minerals or remove and sell petroleum and natural gas from the lessor's property in return for royalty payments.
Mineral rights are the privileges granted to individuals or entities regarding the extraction and sale of minerals found on or beneath a piece of land. These rights are separate from surface and air rights.
A nondisturbance clause in a real estate contract ensures that a tenant's lease will continue even if the property owner faces foreclosure, or that surface development will not be impeded by subsurface mineral rights.
An Oil and Gas Lease is a legal agreement that grants the right to explore, extract, and produce oil, gas, and sometimes other minerals from the land. The lease outlines terms such as the subsurface and surface rights, duration, extension terms, royalties, surface damages, assignments, and warranties.
Partial Interest refers to the ownership of a part of the ownership rights in a parcel of real estate, which can include rights like mineral rights or easements. It can also describe an undivided interest in a property shared with several other owners.
Subsurface rights refer to the rights to extract minerals, oil, and gas from beneath a property's surface. Owning these rights can be valuable and is often separated from surface rights in real estate transactions.
Surface rights refer to the legal rights associated with the surface area of a piece of real estate. These rights are often distinct from underground (mineral rights) or above-ground (air rights) entitlements.
