OIL & GAS Flashcards
The land’s surface as well as the estate of minerals below the lands surface.
What does a fee simple absolute include?
The ownership interest in minerals or natural resources located in the subsurface of the land.
What is a mineral estate?
This estate can be severed by conveyance or reservation.
How is a mineral estate severed?
1) Lessee is not entitled to exclusive use of the leased parcel of land; 2) The lessee is entitled to both use the land’s surface and remove the minerals from it so long as the use is reasonable and the lessee does not negligently damage the surface estate; 3) the lease can provide that the lessee is entitled to exercise its rights under the lease for the duration the minerals can be removed, rather then only for the duration of term of years.
What are the distinguishing features of an oil and gas lease?
