My name is Randy Hancock. I am new to the web site and discussion arena. Recently, I inherited a small mineral interest in Culberson County, TX. Apparently, it came with an ownership in surface land. The Culberson County tax authorities have told me that I must pay annual real estate taxes for the surface land in order to retain my ownership in the minerals in case of future exploration.
Is this true? Am I forced to own surface rights to land on PSL just to retain minerals? The property is in AB 1636, BLK 97, SEC 6.
Sell the surface and reserve the minerals.
If the land is PSL and Relinquishment Act property, the State of Texas owns 100% of the minerals. By holding the surface, you act as agent for the State in negotiating oil & gas leases. The State graciously allows you a 50% take for your agency (actually, as if you did own the 50% interest in minerals). If you sell the surface, you will no longer have that agency relationship, and since you do not own the minerals, they are retained by the State and the new surface owner (they call them the "owner of the soil") will get the agency relationship. I did a quick check on the land reference you showed and it is a land class 7, which means the State owns the minerals.
I am NOT an attorney, but I do not believe the response by Mr. Moore is correct for Relinquishment property. I believe if you sell the surface, you lose the rights as "owner of the soil."
Mr. Moore, I don't believe he can do that in the case of Relinquishment property. The owner of the surface is the agent for the State of Texas, which retained all minerals at the time of the land grant or sale. The PSL survey is a first clue, and a check of the General Land Office records shows this is a type 7 property, and if he sells the surface, not sure how he can reserve the minerals which are owned by the State.
If I am incorrect in this, please let me know.
I believe Mr. Marrow is correct as it pertains to this tract of land. You have to hold on to the land in order to participate in any upside the minerals might present.