Affects Control of the Surface Estate

The important thing that you as a landowner must understand when selling gas rights is that you lose all control of the surface when you do this. You will still own the land; however, your buyer gains control over the surface so they can extract oil and gas from what is underneath. This often means drilling in places that could affect how you use the remaining land surface while production is going on. It is also important to note that groundwater is assumed to be a part of the surface.

In some cases, landowners selling mineral rights may be able to work out agreements ahead of time with their buyers so that both parties can achieve their goals. In most cases, the legalities of contracting your rights to a buyer means that unless there is a very good reason why you should remain in control of certain parts of the surface, your buyer will maintain control. Therefore, working with a lawyer is highly recommended to make sure that any compromises are worked out and each party understands what they do and do not have control over.

The other important factor to consider when selling oil rights is land value. Should you decide to sell your land after selling your gas rights whether or not oil and gas are already in production, you could see either an increase or decrease in your land value. Increases usually occur if there is a high expectation of what could be produced by the land or if it is currently producing well.

You could see a decrease in land value due to the destruction of the surface if drilling has made the land unfit for other use. You must also consider the fact that unless specific details on liabilities and compensation for damages are spelled out in the contract ahead of time, energy companies have very few liabilities in terms of the destruction of your land.