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1
Who	
  Owns	
  the	
  Mineral	
  Rights	
  Under	
  Your	
  Land?	
  
North	
  Carolina	
  is	
  set	
  to	
  begin	
  natural	
  gas	
  exploration	
  
after	
   the	
   General	
   Assembly	
   paved	
   the	
   way	
   for	
  
legalizing	
   hydraulic	
   fracturing.	
   In	
   2012,	
   the	
   General	
  
Assembly	
  required	
  the	
  Mining	
  and	
  Energy	
  Commission	
  
(MEC)	
   to	
   create	
   the	
   regulatory	
   structure	
   that	
   will	
  
govern	
   hydraulic	
   fracturing	
   in	
   North	
   Carolina.	
   The	
  
General	
   Assembly	
   could	
   move	
   to	
   issue	
   permits	
   once	
  
this	
  rule-­‐making	
  process	
  is	
  complete.	
  As	
  a	
  landowner,	
  
it	
  is	
  important	
  to	
  know	
  if	
  you	
  own	
  your	
  mineral	
  rights	
  
for	
   two	
   reasons.	
   First,	
   this	
   is	
   important	
   if	
   you	
   are	
  
interested	
  in	
  leasing	
  your	
  minerals.	
  Second,	
  if	
  you	
  do	
  
not	
   own	
   your	
   mineral	
   rights	
   but	
   own	
   the	
   surface	
  
property,	
   known	
   as	
   a	
   split	
   estate,	
   there	
   could	
   be	
  
drilling	
  on	
  your	
  land	
  whether	
  you	
  consent	
  or	
  not.	
  This	
  
document	
   will	
   walk	
   you	
   through	
   steps	
   involved	
   in	
   a	
  
mineral	
  rights	
  title	
  search.	
  
One	
  Important	
  Caveat	
  
The	
  information	
  provided	
  in	
  this	
  document	
  should	
  not	
  
be	
   construed	
   as	
   legal	
   advice.	
   While	
   an	
   attorney	
   was	
  
consulted	
  during	
  the	
  development	
  of	
  this	
  document,	
  it	
  
is	
  being	
  provided	
  for	
  informational	
  purposes	
  only.	
  
Mineral	
  rights	
  title	
  searches	
  can	
  be	
  long	
  and	
  confusing,	
  
depending	
   on	
   when	
   the	
   mineral	
   rights	
   were	
   severed	
  
from	
  the	
  surface	
  rights.	
  Interpreting	
  documents	
  can	
  be	
  
difficult;	
  if	
  you	
  do	
  not	
  own	
  your	
  mineral	
  rights,	
  it	
  does	
  
not	
  necessarily	
  mean	
  that	
  you	
  do	
  not	
  own	
  the	
  oil	
  and	
  
gas	
  rights.	
  Often,	
  hiring	
  an	
  attorney	
  who	
  specializes	
  in	
  
this	
   work	
   is	
   necessary	
   before	
   it	
   can	
   be	
   determined	
  
who	
   owns	
   the	
   rights	
   to	
   minerals	
   under	
   your	
   land.	
   If	
  
you	
   have	
   questions	
   or	
   any	
   level	
   of	
   uncertainty,	
   it	
   is	
  
Do	
  you	
  own	
  your	
  mineral	
  rights?	
  
If	
  you	
  don’t,	
  someone	
  could	
  drill	
  
on	
  your	
  land	
  without	
  your	
  
consent.	
  Here	
  are	
  the	
  steps	
  you	
  
can	
  take	
  to	
  find	
  out	
  if	
  you	
  own	
  
your	
  mineral	
  rights.	
  
2
highly	
   recommended	
   that	
   you	
   consult	
   an	
  
attorney.	
  The	
  North	
  Carolina	
  Bar	
  Association	
  has	
  
a	
  lawyer	
  referral	
  service	
  that	
  can	
  be	
  reached	
  at	
  1-­‐
800-­‐662-­‐7660	
   (in-­‐state)	
   or	
   919-­‐677-­‐8574	
   (out-­‐
of-­‐state	
   and	
   in	
   the	
   Raleigh	
   calling	
   area).	
   Details	
  
can	
   be	
   found	
   at	
   www.ncbar.org/public-­‐pro-­‐
bono/lawyer-­‐referral-­‐service/for-­‐the-­‐
public.aspx	
  
What	
  Will	
  You	
  Need	
  to	
  Begin	
  a	
  Title	
  Search?	
  
There	
   are	
   several	
   things	
   you	
   will	
   need	
   as	
   you	
  
start	
  a	
  mineral	
  rights	
  title	
  search.	
  Essentially,	
  you	
  
will	
   want	
   any	
  documentation	
  that	
   identifies	
   the	
  
property	
   you	
  are	
   researching.	
   These	
  documents	
  
include	
  (1)	
  current	
  deed,	
  (2)	
  tax	
  ID	
  number,	
  (3)	
  
previous	
   owners,	
   (4)	
   previous	
   deed	
   copies,	
   and	
  
(5)	
  street	
  address	
  of	
  the	
  property.	
  
Where	
  Do	
  You	
  Search?	
  
In	
  North	
  Carolina,	
  the	
  Register	
  of	
  Deeds	
  for	
  each	
  
county	
   acts	
   as	
   the	
   custodian	
   of	
   land	
   titles	
   and	
  
land	
  transaction	
  documents.	
  Searches	
  will	
  differ	
  
depending	
  on	
  the	
  county.	
  The	
  best	
  way	
  to	
  start	
  is	
  
by	
   contacting	
   your	
   county	
   and	
   asking	
   how	
   to	
  
begin	
  your	
  search.	
  They	
  will	
  direct	
  you	
  to	
  either	
  
an	
  online	
  database	
  or	
  paper	
  files.	
  It	
  is	
  more	
  likely	
  
that	
  paper	
  files	
  will	
  need	
  to	
  be	
  searched	
  for	
  older	
  
deeds.	
   County	
   Register	
   of	
   Deeds	
   offices	
   can	
   be	
  
located	
   at	
  
www.ncard.us/Directory/CountyMap.htm	
  
What	
  Are	
  You	
  Looking	
  For?	
  
There	
  are	
   several	
   items	
   that	
   are	
  key	
   to	
   identify	
  
when	
   searching	
   within	
   a	
   deed	
   for	
   evidence	
   of	
  
mineral	
   rights	
   ownership.	
   These	
   items	
   include	
  
(1)	
   the	
   seller	
   or	
   “grantor,”	
   (2)	
   the	
   buyer	
   or	
  
“grantee,”	
   (3)	
   date	
   of	
   deed,	
   (4)	
   date	
   deed	
   was	
  
recorded,	
   (5)	
   the	
   “legal”	
   (acreage	
   and	
   county)	
  
description	
  of	
  the	
  property,	
  (6)	
  the	
  source	
  of	
  title	
  
or	
  prior	
  deed,	
  and	
  (7)	
  any	
  exceptions	
  to	
  the	
  sale	
  
or	
   reservations.	
   This	
   last	
   item	
   is	
   perhaps	
   the	
  
most	
   important	
   when	
   determining	
   if	
   the	
  
minerals	
  were	
  severed	
  from	
  the	
  surface	
  at	
  some	
  
point	
  in	
  the	
  past.	
  
Conducting	
  a	
  Mineral	
  Rights	
  Title	
  Search	
  
*	
  This	
  document	
  drew	
  heavily	
  from	
  “A	
  Citizen’s	
  Guide	
  to	
  Title	
  Searches:	
  Who	
  Else	
  Has	
  an	
  Ownership	
  Interest	
  in	
  
Your	
  Land,”	
  published	
  in	
  2008	
  by	
  the	
  Mountain	
  Watershed	
  Association	
  of	
  Pennsylvania.	
  www.mtwatershed.com	
  
 
	
  
	
  
3
What	
  Is	
  a	
  Deed	
  Chain?	
  
A	
  deed	
  chain	
  is	
  necessary	
  when	
  determining	
  if	
  and	
  
when	
  the	
  mineral	
  rights	
  were	
  severed	
  from	
  your	
  
property.	
  First,	
  begin	
  with	
  the	
  source	
  of	
  title.	
  This	
  is	
  
the	
  indicator	
  of	
  the	
  sale	
  where	
  the	
  current	
  seller	
  or	
  
“grantor”	
  bought	
  the	
  property.	
  	
  This	
  will	
  lead	
  you	
  to	
  
the	
  prior	
  deed.	
  Repeat	
  this	
  process	
  until	
  you	
  are	
  able	
  
to	
  find	
  mention	
  of	
  the	
  mineral	
  rights	
  in	
  any	
  exceptions	
  
or	
  reservations	
  to	
  the	
  sale.	
  It	
  is	
  critical	
  to	
  maintain	
  an	
  
unbroken	
  chain.	
  Failing	
  to	
  do	
  so	
  means	
  that	
  you	
  cannot	
  
be	
  sure	
  of	
  current	
  ownership	
  of	
  the	
  mineral	
  rights.	
  
In	
  the	
  case	
  of	
  Lee	
  County	
  in	
  North	
  Carolina,	
  mineral	
  
rights	
  may	
  have	
  been	
  severed	
  as	
  far	
  back	
  as	
  the	
  early	
  
20th	
  or	
  19th	
  centuries.	
  
What	
  If	
  Someone	
  Else	
  Owns	
  the	
  Mineral	
  Rights	
  
Under	
  Your	
  Land?	
  
Because	
  the	
  deed	
  chain	
  indicates	
  the	
  mineral	
  rights	
  
under	
  your	
  land	
  were	
  severed	
  prior	
  to	
  your	
  purchase	
  
of	
  the	
  property	
  does	
  not	
  mean	
  your	
  work	
  is	
  necessarily	
  
done.	
  In	
  North	
  Carolina,	
  the	
  General	
  Assembly	
  has	
  
enacted	
  a	
  series	
  of	
  laws	
  known	
  as	
  “dormant	
  minerals”	
  
statutes.	
  These	
  laws	
  extinguish	
  “ancient”	
  mineral	
  
rights	
  of	
  the	
  owner	
  and	
  grant	
  them	
  back	
  to	
  the	
  surface	
  
owner.	
  Mineral	
  rights	
  are	
  extinguished	
  when	
  (1)	
  the	
  
4
title	
  to	
  oil,	
  gas,	
  or	
  mineral	
  rights	
  is	
  severed	
  or	
  
separated	
  from	
  the	
  surface	
  estate,	
  (2)	
  the	
  
mineral	
  interest	
  is	
  not	
  in	
  the	
  course	
  of	
  being	
  
mined,	
  drilled,	
  worked	
  or	
  operated,	
  or	
  in	
  the	
  
adverse	
  possession	
  of	
  another,	
  (3)	
  the	
  record	
  
title	
  holder	
  of	
  the	
  oil,	
  gas	
  or	
  mineral	
  interest	
  
must	
  not	
  have	
  listed	
  the	
  property	
  for	
  tax	
  
purposes	
  in	
  the	
  county	
  for	
  five	
  years	
  prior	
  to	
  
January	
  1,	
  1986,	
  and	
  (4)	
  the	
  surface	
  owner	
  must	
  
have	
  a	
  legal	
  capacity	
  to	
  own	
  land,	
  and	
  must	
  be	
  
able	
  to	
  establish	
  a	
  30-­‐year,	
  unbroken	
  deed	
  
chain.**	
  
This	
  and	
  all	
  other	
  aspects	
  of	
  determining	
  mineral	
  
rights	
  ownership	
  can	
  be	
  very	
  complicated.	
  An	
  
attorney	
  should	
  always	
  be	
  consulted	
  when	
  
determining	
  mineral	
  rights	
  ownership.	
  
Additional	
  Questions	
  
If	
  you	
  have	
  additional	
  questions	
  about	
  mineral	
  
rights	
  or	
  mineral	
  rights	
  leasing,	
  please	
  contact	
  
James	
  Robinson	
  of	
  the	
  Rural	
  Advancement	
  
Foundation	
  International-­‐USA	
  at	
  919-­‐542-­‐1396	
  
ext.	
  209	
  or	
  james@rafiusa.org.	
  
	
  
Figure:	
  Trassic	
  Basins	
  where	
  the	
  potential	
  for	
  shale	
  gas	
  development	
  exists	
  
**	
  North	
  Carolina	
  General	
  Statutes	
  §	
  1-­‐42.9	
  (a)	
  
	
  

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How to Conduct a Mineral Rights Title Search

  • 1.     1 Who  Owns  the  Mineral  Rights  Under  Your  Land?   North  Carolina  is  set  to  begin  natural  gas  exploration   after   the   General   Assembly   paved   the   way   for   legalizing   hydraulic   fracturing.   In   2012,   the   General   Assembly  required  the  Mining  and  Energy  Commission   (MEC)   to   create   the   regulatory   structure   that   will   govern   hydraulic   fracturing   in   North   Carolina.   The   General   Assembly   could   move   to   issue   permits   once   this  rule-­‐making  process  is  complete.  As  a  landowner,   it  is  important  to  know  if  you  own  your  mineral  rights   for   two   reasons.   First,   this   is   important   if   you   are   interested  in  leasing  your  minerals.  Second,  if  you  do   not   own   your   mineral   rights   but   own   the   surface   property,   known   as   a   split   estate,   there   could   be   drilling  on  your  land  whether  you  consent  or  not.  This   document   will   walk   you   through   steps   involved   in   a   mineral  rights  title  search.   One  Important  Caveat   The  information  provided  in  this  document  should  not   be   construed   as   legal   advice.   While   an   attorney   was   consulted  during  the  development  of  this  document,  it   is  being  provided  for  informational  purposes  only.   Mineral  rights  title  searches  can  be  long  and  confusing,   depending   on   when   the   mineral   rights   were   severed   from  the  surface  rights.  Interpreting  documents  can  be   difficult;  if  you  do  not  own  your  mineral  rights,  it  does   not  necessarily  mean  that  you  do  not  own  the  oil  and   gas  rights.  Often,  hiring  an  attorney  who  specializes  in   this   work   is   necessary   before   it   can   be   determined   who   owns   the   rights   to   minerals   under   your   land.   If   you   have   questions   or   any   level   of   uncertainty,   it   is   Do  you  own  your  mineral  rights?   If  you  don’t,  someone  could  drill   on  your  land  without  your   consent.  Here  are  the  steps  you   can  take  to  find  out  if  you  own   your  mineral  rights.   2 highly   recommended   that   you   consult   an   attorney.  The  North  Carolina  Bar  Association  has   a  lawyer  referral  service  that  can  be  reached  at  1-­‐ 800-­‐662-­‐7660   (in-­‐state)   or   919-­‐677-­‐8574   (out-­‐ of-­‐state   and   in   the   Raleigh   calling   area).   Details   can   be   found   at   www.ncbar.org/public-­‐pro-­‐ bono/lawyer-­‐referral-­‐service/for-­‐the-­‐ public.aspx   What  Will  You  Need  to  Begin  a  Title  Search?   There   are   several   things   you   will   need   as   you   start  a  mineral  rights  title  search.  Essentially,  you   will   want   any  documentation  that   identifies   the   property   you  are   researching.   These  documents   include  (1)  current  deed,  (2)  tax  ID  number,  (3)   previous   owners,   (4)   previous   deed   copies,   and   (5)  street  address  of  the  property.   Where  Do  You  Search?   In  North  Carolina,  the  Register  of  Deeds  for  each   county   acts   as   the   custodian   of   land   titles   and   land  transaction  documents.  Searches  will  differ   depending  on  the  county.  The  best  way  to  start  is   by   contacting   your   county   and   asking   how   to   begin  your  search.  They  will  direct  you  to  either   an  online  database  or  paper  files.  It  is  more  likely   that  paper  files  will  need  to  be  searched  for  older   deeds.   County   Register   of   Deeds   offices   can   be   located   at   www.ncard.us/Directory/CountyMap.htm   What  Are  You  Looking  For?   There  are   several   items   that   are  key   to   identify   when   searching   within   a   deed   for   evidence   of   mineral   rights   ownership.   These   items   include   (1)   the   seller   or   “grantor,”   (2)   the   buyer   or   “grantee,”   (3)   date   of   deed,   (4)   date   deed   was   recorded,   (5)   the   “legal”   (acreage   and   county)   description  of  the  property,  (6)  the  source  of  title   or  prior  deed,  and  (7)  any  exceptions  to  the  sale   or   reservations.   This   last   item   is   perhaps   the   most   important   when   determining   if   the   minerals  were  severed  from  the  surface  at  some   point  in  the  past.   Conducting  a  Mineral  Rights  Title  Search   *  This  document  drew  heavily  from  “A  Citizen’s  Guide  to  Title  Searches:  Who  Else  Has  an  Ownership  Interest  in   Your  Land,”  published  in  2008  by  the  Mountain  Watershed  Association  of  Pennsylvania.  www.mtwatershed.com  
  • 2.       3 What  Is  a  Deed  Chain?   A  deed  chain  is  necessary  when  determining  if  and   when  the  mineral  rights  were  severed  from  your   property.  First,  begin  with  the  source  of  title.  This  is   the  indicator  of  the  sale  where  the  current  seller  or   “grantor”  bought  the  property.    This  will  lead  you  to   the  prior  deed.  Repeat  this  process  until  you  are  able   to  find  mention  of  the  mineral  rights  in  any  exceptions   or  reservations  to  the  sale.  It  is  critical  to  maintain  an   unbroken  chain.  Failing  to  do  so  means  that  you  cannot   be  sure  of  current  ownership  of  the  mineral  rights.   In  the  case  of  Lee  County  in  North  Carolina,  mineral   rights  may  have  been  severed  as  far  back  as  the  early   20th  or  19th  centuries.   What  If  Someone  Else  Owns  the  Mineral  Rights   Under  Your  Land?   Because  the  deed  chain  indicates  the  mineral  rights   under  your  land  were  severed  prior  to  your  purchase   of  the  property  does  not  mean  your  work  is  necessarily   done.  In  North  Carolina,  the  General  Assembly  has   enacted  a  series  of  laws  known  as  “dormant  minerals”   statutes.  These  laws  extinguish  “ancient”  mineral   rights  of  the  owner  and  grant  them  back  to  the  surface   owner.  Mineral  rights  are  extinguished  when  (1)  the   4 title  to  oil,  gas,  or  mineral  rights  is  severed  or   separated  from  the  surface  estate,  (2)  the   mineral  interest  is  not  in  the  course  of  being   mined,  drilled,  worked  or  operated,  or  in  the   adverse  possession  of  another,  (3)  the  record   title  holder  of  the  oil,  gas  or  mineral  interest   must  not  have  listed  the  property  for  tax   purposes  in  the  county  for  five  years  prior  to   January  1,  1986,  and  (4)  the  surface  owner  must   have  a  legal  capacity  to  own  land,  and  must  be   able  to  establish  a  30-­‐year,  unbroken  deed   chain.**   This  and  all  other  aspects  of  determining  mineral   rights  ownership  can  be  very  complicated.  An   attorney  should  always  be  consulted  when   determining  mineral  rights  ownership.   Additional  Questions   If  you  have  additional  questions  about  mineral   rights  or  mineral  rights  leasing,  please  contact   James  Robinson  of  the  Rural  Advancement   Foundation  International-­‐USA  at  919-­‐542-­‐1396   ext.  209  or  james@rafiusa.org.     Figure:  Trassic  Basins  where  the  potential  for  shale  gas  development  exists   **  North  Carolina  General  Statutes  §  1-­‐42.9  (a)