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Mineral rights: a quick overview

Discovering petroleum or other natural resources on your property could be a financial boon. Searching for property with these resources could be a wise business endeavor.

Success in both of these situations — and in many others — could hinge on your understanding of mineral rights. This article provides a general overview of this legal concept which could allow you to own minerals with or without owning the rights to the land above them.

Minnesota mineral rights

In Minnesota, the state owns just under 25% of all mineral rights. You can also own them as an individual or through a corporation. It is also possible to own mineral rights without owning surface rights. This type of severance might make it possible to pursue specific extraction ventures, but it also might make it difficult to track down who exactly owns what.

North Dakota mineral rights

Similar to its eastern neighbor, North Dakota allows for the severance of real property into surface and mineral estates. There are also specific rules for transfers and leases: both situations that would likely factor into your oil, gas or mining business plan.

There are various possible complications under state law. For example, the law could create a situation in which you could unintentionally and automatically abandon your mineral rights if you did not use them for a certain period of time.

Overall, there are far too many potential points of confusion and complication to list in a brief article. Similar to any other real estate issue, mineral rights sales, purchases, transfers, leases and disputes all involve unique parcels of property. Research, knowledge and keen attention to the details of applicable law are all likely to contribute to the success of your mining venture.