Real estate transactions existed solely as fee simple transfers prior to the advent of oil exploration and production. Commercial mineral production complicated property ownership, as many property owners had no interest in mining or drilling operations. Similarly, oil and gas companies may wish to acquire the rights to drill in a particular area, but have no desire to pay to lease the structures on the property’s surface. To remedy this situation, fee simple estate owners may sell mineral rights either as unknown rights, which grant ownership of all mineral commodities beneath their land, or as limited rights, which allow companies only to extract and profit from specific commodities. While states regulate the ownership and transfer of mineral rights, these regulations differ on a state-by-state basis.
Unlike the majority of nations, the United States government does not maintain ownership over the country’s mineral resources. US organizations and individuals are legally capable of extracting, owning, and selling mineral commodities found on or below the Earth’s surface, including oil and gas, without government authorization. This freedom has led to a distinction between mineral rights and surface rights. The rights to a region’s mineral resources originally belonged to the property owner, resulting in a type of real estate ownership known as a fee simple estate. The owner of a fee simple estate holds the rights to the surface, subsurface, and airspace of a property, as well as the right to transfer this ownership, individually or collectively, via lease, sale, gift, or inheritance.
Real estate transactions existed solely as fee simple transfers prior to the advent of oil exploration and production. Commercial mineral production complicated property ownership, as many property owners had no interest in mining or drilling operations. Similarly, oil and gas companies may wish to acquire the rights to drill in a particular area, but have no desire to pay to lease the structures on the property’s surface. To remedy this situation, fee simple estate owners may sell mineral rights either as unknown rights, which grant ownership of all mineral commodities beneath their land, or as limited rights, which allow companies only to extract and profit from specific commodities. While states regulate the ownership and transfer of mineral rights, these regulations differ on a state-by-state basis.
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Sentry Energy ProductionAs the U.S. government and its residents attempt to become less dependent on foreign oil and gas, oil and natural gas exploration and development firm Sentry Energy Production LLC seeks out reserves in the most efficient manner. Archives
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