Surface Rights and Subsurface Rights: Understanding the Difference

Many landowners don’t realize that owning land doesn’t automatically mean they own what lies beneath it. Even if your name appears on the property deed, another party, such as an oil and gas company or a previous mineral rights owner, might control the subsurface resources.

This separation between surface rights and subsurface rights can affect how your land is used and who benefits from it. That's why it's important to know which rights you own to manage your property better. Keep reading to learn about the differences between surface and subsurface rights.

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Key Takeaways

• Surface rights refer to ownership and control of the land’s surface, while subsurface rights refer to ownership of the resources beneath the land, such as oil and gas and other natural resources.
• When subsurface or mineral rights are separated, the mineral owner has the right to extract resources or drill on the property.
• To sell subsurface rights at maximum value, consider working with a trusted broker to connect you with trusted buyers.

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The Difference Between Subsurface and Surface Rights

Surface rights and subsurface rights are two different types of ownership tied to a single piece of land. Surface rights give the owner control over the land’s surface, including the soil, buildings, crops, and other structures or improvements.

Subsurface rights (also known as mineral rights) cover the minerals, oil, gas, and other resources located beneath the surface. In some cases, the surface and subsurface rights belong to the same person, but they can also be severed. When this happens, one person may own the land on top while another owns the minerals below.

The mineral rights owner has the authority to extract resources or set up drilling operations, while the surface owner has no control over those resources. This separation can sometimes lead to disagreements or require special agreements between surface owners and mineral owners. Understanding who controls each right is important in order to manage the land effectively.

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What Is a Split Estate?

A split estate occurs when the surface and subsurface rights of a property are owned by different parties. It generally happens when a landowner sells or transfers ownership of the subsurface rights to another party while retaining ownership of the surface. Owning a split estate can present unique challenges for surface owners, such as: 

• Limited Control Over Subsurface Activities – Even if you own the surface, the mineral rights holder may have the legal right to access and develop the minerals beneath, sometimes with minimal obligation to seek your approval.

• Land Disturbance – Activities like drilling, construction of pads, and increased traffic can affect your land's use and value. However, you will generally have some control over the impacts of mineral extraction on the surface land.
• Legal and Financial Risks – Disagreements over access, damages, or compensation can lead to legal disputes.

While for mineral rights owners, a split estate can present the following challenges:

• Access Restrictions – Mineral owners might need to negotiate with surface owners to obtain permission for activities like drilling or constructing access roads.
• Operational Delays – Conflicts with surface owners or regulatory issues can slow down or halt development projects.
• Financial Responsibility – Thanks to clear agreements, mineral owners can often be held responsible for damages caused to the surface or existing structures.

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Should You Sever Your Surface and Subsurface Rights?

Before severing your mineral or surface rights, it’s important to understand the different ways you can manage your ownership. Any option you choose can affect your income or the long-term value of your property. Along with severing and selling, you can learn about other options for your mineral estate below:

• Selling – You can sell your mineral rights to receive an immediate lump-sum payment. This option is best if you want quick access to funds or prefer not to manage drilling or surface operations yourself. This involves severing your rights.
• Leasing – A mineral lease or gas lease allows you to keep ownership of your minerals while earning royalties from production. You’ll benefit from ongoing income as long as the oil and gas company continues to extract resources.
• Holding – Some owners prefer to hold onto their mineral rights and wait for market conditions to improve or for better offers. This approach requires patience but can sometimes increase your future returns.
• Developing – You can also partner with a gas company to develop the subsurface resources on your land. While this can be profitable, it involves higher costs, regulatory approvals, and potential impact on your surface property.

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Sell Your Oil and Gas Rights for Maximum Value With Help From a Mineral Broker

If you own surface rights and subsurface rights, you might decide to sell, lease, or hold on to them for future development. By selling, you can gain access to a lump sum without the risks of uncertain development. 

Making decisions about your mineral estate can feel overwhelming, especially when you’re trying to get the best value from your property. At The Mineral Auction, we help landowners who hold mineral rights connect with serious buyers and secure competitive offers. Let us help you get valuable offers for your mineral rights. 

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To explore more options for your real estate and get guidance on selling for maximum value, contact The Mineral Auction today.

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