Mineral and Surface Rights on North Texas Ranches

Thinking about a ranch in Pilot Point or greater Denton County and wondering who controls what happens below and above the ground? You are not alone. In North Texas, mineral and surface rights often travel on different paths, which can shape how you enjoy, improve, or market a property. This guide explains the essentials in plain English and gives you a clear checklist for due diligence so you can buy or sell with confidence. Let’s dive in.

Mineral vs. surface rights: the basics

In Texas, the mineral estate is legally considered “dominant” over the surface estate. That means a mineral owner, or a company leasing from that owner, can use as much of the surface as is reasonably necessary to explore for and produce minerals. Courts have discussed this in landmark cases, and it remains a core starting point for title analysis.

Mineral and surface rights can be separated, called severance. A deed or will can reserve or convey minerals at any time, creating different owners for the surface and the minerals. Once severed, the surface owner and the mineral owner are distinct parties with different rights.

You will also hear related terms:

• Executive rights: the power to sign mineral leases and collect bonuses. This can be owned by someone other than the mineral royalty owner.
• Royalty interest: a share of production value without the duty to operate wells.
• Non-executive mineral interest: a mineral owner who does not have the right to lease but still receives royalty if production occurs.

The key takeaway: owning the surface does not automatically control subsurface development. You need to confirm who owns the minerals and who holds executive rights.

What dominance means on your ranch

Mineral owners and their lessees typically have an implied right to enter and use the surface in a reasonable way to produce minerals. That can include well pads, access roads, pipelines, and utilities. The exact footprint depends on the lease terms and operational needs.

The accommodation concept

Texas courts apply an “accommodation” concept in certain situations. If you have an existing surface use, and there is a reasonable alternative for the operator to produce the minerals that avoids unnecessary interference, an operator may need to accommodate your use. This is highly fact-specific. If you think it applies, talk with an oil and gas attorney before you rely on it.

Why surface agreements matter

A written surface use agreement, often called an SUA, can set clear rules before operations begin. These agreements help define locations, timing, compensation, restoration, and protections for livestock and improvements. Even if you do not own the minerals, you can sometimes negotiate terms with the operator or ask the mineral owner to include surface protections when leasing.

Common Denton County scenarios

• You own the surface, but someone else owns the minerals. Expect that the mineral owner or its lessee may access the property to drill, subject to lease terms and reasonable use.
• You own some minerals, but not the executive rights. Another party can lease the minerals, which can authorize development, while you receive your share of royalty.
• You own the surface and all minerals, unleased. You control leasing decisions and can negotiate both mineral and surface terms. This does not eliminate all future risk, but it gives you more control.

In every case, verify ownership, executive rights, and any recorded leases or easements affecting your tract.

Surface use agreements that protect you

An effective SUA spells out expectations and reduces conflict. Key terms often include:

• Well pad locations with GPS and setbacks from homes, barns, and water features
• Access road routes, gate protocols, and maintenance responsibilities
• Timing and duration of construction and operations
• Restoration standards for topsoil, grading, and reseeding
• Fencing, livestock safeguards, and livestock water access
• Water sourcing and disposal plans
• Pipeline and utility easement corridors and compensation
• Environmental protections and spill response procedures
• Insurance, indemnity, and bonding for plugging and reclamation
• Rights of access for inspections and documentation

Typical compensation structures

• One-time lump sums per pad site or per disturbed acre
• Annual per-acre payments for ongoing use
• Reimbursement for crop or grazing losses and fence repairs
• Separate payments for pipeline rights of way

Remember, bonus and royalty flows to mineral owners, not surface owners. Surface payments are negotiated separately in the SUA.

Due diligence for Pilot Point and Denton County

A careful document review can prevent surprises. Start with public records and expand into operational and environmental checks.

Title and mineral records to gather

• Your current deed and any prior deeds showing mineral reservations or grants
• Mineral deeds, executive rights conveyances, and recorded leases
• Title commitment that calls out mineral exceptions and endorsements if available
• Recorded easements, pipeline rights of way, and any surface use agreements
• Chain of title materials or a mineral abstract prepared by a professional

Access county record sources such as the Denton County Clerk records and property data at the Denton County Appraisal District.

Operational and environmental checks

• Wells and production near the property using the Texas Railroad Commission oil and gas data queries
• Permit and well file history, including plugged or shut-in status, through the Railroad Commission
• Injection or disposal wells in the area using the RRC’s injection and disposal wells page
• Any enforcement actions or spill reports with the Texas Commission on Environmental Quality
• Phase I environmental site assessment if you see legacy pads, pits, stains, or equipment

Local rules and records to verify

Texas law limits how much local governments can regulate oil and gas. Cities still manage certain surface aspects like traffic or noise. Check current ordinances and permitting with relevant city halls, such as City of Pilot Point.

Practical steps for buyers and sellers

If you are buying

• Order a title commitment that specifically addresses mineral reservations and exceptions.
• Have a mineral title examiner trace the mineral chain of title and executive rights.
• Pull Railroad Commission production reports and well files for the tract and nearby offsets.
• Obtain copies of recorded leases, pooling or unit orders, and any surface use or pipeline agreements.
• Commission a Phase I environmental assessment if operations exist or are likely.
• Consult an oil and gas attorney to interpret lease language, pooling, and executive rights.
• If drilling is likely, negotiate an SUA or record protective restrictions before permits are filed.

If you are selling

• Disclose known leases, wells, pipelines, and surface use agreements, and provide recorded copies.

• Document whether you reserved minerals and who holds executive rights.

• Consider obtaining a mineral title opinion to speed buyer diligence and support pricing.

Local context: Barnett Shale and growth

Denton County sits within the Barnett Shale area, which saw extensive activity in the 2000s and 2010s. Many tracts still show legacy well sites, gathering lines, or older surface disturbance. Plan for a thorough site walk and records review before closing.

As the Dallas-Plano-Irving metro area continues to expand, you may see more interaction between residential uses and energy operations. If your ranch is near a growth corridor, factor in future roads, utilities, and compatibility with nearby development when negotiating lease terms and surface protections.

Work with a ranch-savvy team

Mineral and surface rights do not have to be a mystery. With the right records, clear agreements, and experienced guidance, you can protect your operations and your long-term goals. If you are weighing a Pilots Point purchase, preparing to list acreage in Denton County, or vetting a lease offer, connect with a team that lives in both land and luxury. Reach out to Lesli Ray Etzel for a straightforward plan and local expertise.

FAQs

What does “mineral estate dominance” mean in Texas?

• The mineral owner or its lessee can use the surface in a reasonable way to explore for and produce minerals, subject to lease terms, agreements, and applicable law.

How do executive rights affect a Denton County ranch deal?

• The party with executive rights controls leasing, which can authorize drilling and pooling, so you need to confirm who holds these rights before you rely on surface-only ownership.

Can a mineral owner place a well on my North Texas ranch?

• If minerals are leased, the operator typically may site a well and related facilities using reasonable surface use, unless restricted by lease language or a negotiated surface use agreement.

How does a surface use agreement help in Pilot Point?

• An SUA sets location, timing, compensation, restoration, and protections for livestock and improvements, giving you clarity and leverage before operations begin.

Where can I check for wells and production near a Denton County property?

• Use the Texas Railroad Commission’s online oil and gas data queries to view wells, permits, and production history for your tract and nearby offsets.

What public offices help with mineral and surface records in Denton County?

• Start with the Denton County Clerk for land records, the Denton CAD for parcel and tax data, and the Texas Railroad Commission for wells, permits, and production reports.