Texas houses and mineral rights

[James Lee]

Hello BP! Long time lurker first time poster, I love you all for all the things I've learned from this community over these months, but now I need your help. We are buying a first home near the Austin area of Texas, found a house we love, but hit a snag: the mineral rights do not convey because the sellers don't own them. According to the agent, this is fairly common and nothing to worry about. A Google search paints a nightmare scenario where mineral rights owners can come in whenever they want and dig up your land and don't even need to fix it afterwards as long as you can't prove negligence. This is a rural property if that makes a difference.

How much should I care about mineral rights ownership? The property comes with quite a bit of acreage so a large part of the value is in the land. Should I be worried that some day an oil company will come in and start drilling in my back yard? Should we walk away from this one and find a house that does come with mineral rights? Or is this much ado about nothing?

Experienced Texas investors... help!

[Andrew Postell]

@James Lee that "nightmare" scenario sounds awful!  But that's not how mineral rights work in Texas.  You will own your land.  And in Texas, you have very STRONG property owner rights here. And lot of the the laws weigh in your favor.  The mineral rights general come into play when someone takes the minerals UNDER your property.  In Texas, that is just the oil, gas, salt, uranium and sulfur.  No one can come onto your land and start drilling....You are firmly protected by this with the State of Texas Landowner's Bill of Rights...but they don't have to drill on your surface to take the minerals beneath it.  Oil, the most common and lucrative, is around 4000 - 5000 feet below the surface and it could be acres and acres large.  So if a drilling company starts a well, they might be taking oil from your property from several hundred feet away...without ever touching your surface property.  But to take the minerals, they have to get permission from the person who owns the mineral rights.  The entities who own the mineral rights are compensated if any minerals are taken.  If you don't own the mineral rights, you won't get compensated.  But no one is coming on your land without your permission.  This is Texas.  Even the cows have guns.  

Hope this helps but feel free to ask anything additional if you need.  Thanks!