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Simple English definitions for legal terms
mineral interest
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A quick definition of mineral interest:
A mineral interest is a right that allows someone to search for, extract, and sell minerals found on a piece of land. This right is usually granted through an oil-and-gas lease and can also entitle the owner to receive a portion of the profits made from the sale of the minerals. It is also known as a mineral right and is separate from the rights to the surface of the land.
A more thorough explanation:
Definition: A mineral interest is the right to explore, extract, and sell minerals from a piece of land or to receive a share of the profits from mineral production. This right is typically granted through an oil-and-gas lease.
For example, if a company leases mineral rights to a piece of land, they have the right to search for and extract oil or gas from that land. The landowner may receive a percentage of the profits from the sale of those minerals.
Another example would be a landowner who retains the mineral rights to their property. They may choose to lease those rights to a mining company, allowing the company to extract minerals in exchange for a royalty payment.
These examples illustrate how a mineral interest grants the holder the right to profit from the extraction and sale of minerals from a piece of land.