Mineral Rights are King

From mineral rights, all mineral royalties spring forth,

such as oil and gas royalties, coal seam royalties, helium royalties, uranium royalties, etc.  Think of the words, “Mineral Rights”. They inherently mean ‘rights to the minerals’.

A caveat of warning — it is possible to sever oil and gas from the mineral rights. Just like you can sever minerals from the land ownership, all it takes is some words and a document filed at the courthouse. It is even possible to sever royalties from a specific lease from the mineral rights. This severed royalty rights are convey via a royalty deed. Royalty deeds do not give the right to lease mineral rights again, or to receive future bonus payments.

The savvy investor needs to make sure that they purchase the Mineral Rights when buying a royalty. Not just the oil or gas royalty itself.

Thus, because an investor wishes to buy an oil or gas royalty, that means he really should purchase the Mineral Rights. In Texas, these rights must be conveyed to a new owner via a written deed, and that deed needs to be filed at the courthouse that is associated to the county where the minerals reside.  So if you buy minerals in Scurry county, Texas then you must file your mineral deed in there.