Severed mineral owners and Geothermal royalties

FOR Geothermal energy extraction - SEVERED mineral rights estates from the surface estate would be EXCLUDED from any/all royalties or payments - most likely - if the mineral rights conveyance says nothing about geothermal energy or heat, etc…!!! This is TERRIBLE!!! We need to get up in arms about this!



Quite plainly, by law, these are owned and are property of the surface owners.

This attorney-author clearly believes that all geothermal energy belongs to the surface owner and his arguments are well-reasoned. The first sentence notes that there is no case law on this and other attorneys may not agree with his position. At the point were geothermal energy is produced, there will likely be litigation to settle the questions, such as distinctions between water and heat in general and between the wording on deeds which have varying language. It is unlikely that the Texas legislature will get involved and so it will end up in the courts.

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It’s like Landlords (Lessors: Surface Rights Owners) saying to the Renters (Lessees: Energy Companies) that because the Landlord owns the stove, the Renter pays all proportionate energy bill payments to the Landlord?

Agreed, these are legal issues. I contend as a Non-Participating Royalty Interest (NPRI) owner, that geothermal heat in Oil & Gas Fields, and planet-wide is created by radionuclides (Cesium-137 and Strontium-90, et al) which are minerals in the rock strata (owned by mineral owners that have encompassing language) which create the heat (in addition to pressure,etc…) Thus, mineral owners should be compensated for geothermal heat in British Thermal Units (BTUs), in my opinion.

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Are you saying steam is a hydrocarbon?

This has nothing to do with steam! Gasoline is made from oil, exhaust gases are produced when gasoline is burned in a car.

Thank you for sending this link! It explains a lot. Clap, Clap, Clap!

I agree with you. Your link, explains a lot. Mineral reservations need to be more specific as your link explains. Thank you!

“The issue presented here is whether geothermal resources belong to the owner of the mineral estate or the owner of the surface estate. We conclude that the general grant of minerals in, on or under the property includes a grant of geothermal resources, including steam therefrom.” Geothermal Kinetics, Inc. v. Union Oil Co., 75 Cal.App.3d 56, 141 Cal.Rptr. 879 (Cal. App. 1977)

But Idaho says geothermal not a mineral and not included in a mineral reservation in a deed. Ida-Therm, LLC v. Bedrock Geothermal, LLC, 154 Idaho 6, 293 P.3d 630 (Idaho 2012)

In my view the Idaho decision was better reasoned. Different results when the state or federal government hold the surface or mineral rights.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

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