🏡 What To Know About Mineral Rights in Texas Residential Real Estate

🏡 What To Know About Mineral Rights in Texas Residential Real Estate

Mineral rights are one of the most misunderstood parts of Texas real estate. I explain this almost weekly to buyers relocating to Frisco, Prosper, McKinney, Celina, Plano, Little Elm, Allen, Aubrey, Sherman, and areas with rapid development across North Texas.

Texas is unique because:

✔️ The minerals under a piece of land can be separated from the surface

✔️ The minerals can be sold or leased separately
✔️ Most suburban homeowners DO NOT own their mineral rights
✔️ Builders almost always retain the minerals
✔️ Mineral ownership affects what can and cannot happen on your land

Let me break it down in a simple, first-person, Texas-focused way.


1. What Are Mineral Rights?

Mineral rights give a person (or company) the legal right to:

✔️ Access minerals beneath the surface

✔️ Drill
✔️ Extract oil or gas
✔️ Sell or lease mineral interests
✔️ Receive royalty payments

“Minerals” can include:

✔️ Oil

✔️ Natural gas
✔️ Coal
✔️ Uranium
✔️ Sulfur
✔️ Salt

Texas law treats minerals as a separate estate from the surface.


2. What Are Surface Rights?

Surface rights include everything above the ground:

✔️ The house

✔️ The yard
✔️ Driveways
✔️ Landscaping
✔️ Improvements
✔️ Pools
✔️ Fences
✔️ What you can physically access

Surface rights DO NOT automatically include mineral rights.

You can own the surface but not the subsurface.


3. Most North Texas Homeowners Do NOT Own the Mineral Rights

In residential neighborhoods—especially newer ones—builders commonly:

✔️ Sever mineral rights

✔️ Keep the subsurface estate
✔️ Sell only surface rights to buyers

Examples where this is extremely common:

✔️ Frisco — Phillips Creek Ranch, Hollyhock, Newman Village

✔️ Prosper — Windsong Ranch, Star Trail, Lakewood
✔️ Celina — Light Farms, Mustang Lakes, Cambridge Crossing
✔️ McKinney — Trinity Falls, Craig Ranch

Suburban development almost always comes with severed mineral rights.


4. Can Someone Drill on Your Property?

In theory, the mineral owner has the right to use the surface to access minerals—but in reality:

✔️ Urban drilling is heavily restricted

✔️ Cities issue setback and drilling ordinances
✔️ Residential neighborhoods rarely allow surface drilling
✔️ Most drilling is done horizontally from off-site pads

So no—nobody is installing an oil rig in your front yard.

But the mineral estate still has legal priority under Texas law.


5. How to Check Who Owns the Mineral Rights

Buyers often ask:

“Can we find out if mineral rights are included?”

Here’s the truth:

✔️ Title commitments do NOT guarantee mineral ownership

✔️ Title companies DO NOT insure minerals

✔️ You need a separate mineral title search

✔️ This is expensive and often unnecessary for suburban homes

In most cases, we assume:

Minerals are NOT included unless the seller states otherwise.


6. What Happens If You DO Own the Mineral Rights?

This is rare in North Texas suburbs, but if mineral rights are included:

You may be able to:

✔️ Lease your minerals

✔️ Receive royalty income
✔️ Participate in drilling units
✔️ Prevent others from drilling under your land

But again—this is extremely uncommon for new construction and platted subdivisions.


7. Why Builders Keep the Minerals

Builders retain mineral rights to:

✔️ Keep long-term royalty potential

✔️ Prevent land fragmentation
✔️ Maintain control over drilling access
✔️ Avoid liability if minerals are extracted nearby

This is standard practice across DFW.


8. Horizontal Drilling Is Common in DFW

Even if a well site is miles away, horizontal drilling allows companies to:

✔️ Drill underground

✔️ Travel laterally beneath neighborhoods
✔️ Access minerals without surface disruption

This is how most Barnett Shale gas extraction was done in North Texas.


9. Why Mineral Rights Matter to Homeowners

Even if you don’t own the minerals, you should understand:


A) It can affect property value

Homes with retained surface rights (but severed minerals) are standard and do NOT lose value.

Homes with drilling pads nearby may be affected—but this is rare in modern master-planned communities.


B) It affects your rights to deny access

If you don’t own the minerals, you cannot legally prevent underground extraction—BUT cities regulate surface access strictly.


C) You cannot collect royalties unless you own the minerals

Most suburban homeowners have zero mineral income potential.


D) Some buyers misunderstand the issue

Out-of-state buyers often:

❌ Panic unnecessarily

❌ Confuse surface drilling with horizontal drilling

❌ Assume their property will be disrupted

I help clear up the myths.


10. How Mineral Rights Appear in Your Contract

The TREC 1–4 contract includes checkboxes:

✔️ Whether minerals convey

✔️ Whether seller is reserving interest
✔️ Whether royalties are included

Most sellers check:

“Seller reserves mineral rights.”

This is normal.


11. Should You Try to Buy Mineral Rights?

For residential homes in DFW:

✔️ Not necessary

✔️ Not valuable
✔️ Almost never available
✔️ Doesn’t impact your enjoyment of the property

Mineral rights are valuable mostly for:

✔️ Rural properties

✔️ Large acreage
✔️ Ranch land
✔️ Areas near current drilling fields

Most suburban buyers don’t need to worry about it.


12. My Rule of Thumb

In North Texas neighborhoods, you’re buying the surface—not the subsurface. And that’s perfectly normal.


Bottom Line: Mineral Rights Are a Unique Part of Texas Real Estate, but Not a Dealbreaker

When I represent you, I make sure you understand:

✔️ What rights you’re receiving

✔️ Whether minerals are included
✔️ What the seller is reserving
✔️ How horizontal drilling works
✔️ Whether nearby drilling may affect value
✔️ What is standard for the neighborhood you’re buying in

I want you to feel confident—not confused—about mineral rights and how they apply to your property.


Want Me to Check a Property’s Mineral Status?

I can review the title commitment and contract to tell you exactly what you’re receiving.

CLICK HERE to Connect With Me

 

📞 Call or Text: (254) 644-5297✉️ Email Me

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