Lecture Notes: Understanding Mineral Rights

Introduction

Topic: What are mineral rights?
Importance: Critical when buying land or a home.
Definition: Ownership of surface land and underground minerals can belong to different people.

Separate Deeds: Mineral rights can be separated from surface rights into different deeds.
Research Required: Buyers need to research to understand who owns mineral rights.

Surface Owner: Owns the surface of the land.
Mineral Owner: Owns the subsurface minerals.
Royalty Owner: Entitled to a share of profits from mining but cannot mine themselves.

Definition: Separation of surface and mineral rights.
Concerns: Surface owners may not be aware they don’t own mineral rights, leading to disputes.
Taxation Issues: Surface owners pay taxes, but mineral owners might not.

U.S. vs. Other Countries: U.S. grants mineral rights to citizens, unlike many countries where the government owns them.
California Specific Laws:
- Civil Procedure Section 772: Revocation of permission to mine if inactive for 20 years.
- Civil Code Section 883: Possible complete revocation of rights if no mining occurred over 20 years.
- Civil Code Section 848: Must notify surface owner before entering property.
- Public Resource Code Section 3600: Wells must be a specific distance from public property.

Cost of Extraction: Mining is expensive; many properties lack valuable minerals.
Ownership Clarification: If mineral rights are not on the deed, you likely have fee simple ownership.

Eric's Situation: Owns 75% of mineral rights but is restricted from surface entry, making him a royalty owner.
- Legal Setup: Designed to protect land from exploitation.
- Zoning: Resource conservation motives.

Lutherville Series: Educational content about innovations in science and technology.
Eric's Story: Highlights challenges and aspirations of building a homestead in the Mojave Desert.

Note: Always consult a real estate lawyer for accurate interpretations of deeds and ownership rights.