Adventum Funds & Advisory

Glossary

Mineral Severance

When the mineral estate has been separated from the surface estate — and in Texas, the mineral estate is dominant.

In Texas the mineral estate can be severed from the surface estate and sold or reserved separately, and where that has happened the mineral estate is legally dominant: the mineral owner holds the right to make reasonable use of the surface to reach the minerals beneath. For a developer this is a genuine risk to a built project, and it is not curable after closing. Diligence should determine whether minerals have been severed, whether they are currently leased, and whether a surface waiver or accommodation agreement can be negotiated — which typically requires running title to sovereignty and, where the exposure is real, a mineral title opinion.