Houston, Texas Underground Storage Lease and Agreement (Surface and Minerals) is a legal document that establishes a contractual relationship between the landowner and the entity seeking to lease and utilize underground storage space in Houston, Texas. This agreement is designed to safeguard the interests of both parties involved in the underground storage of various commodities, fuels, gases, or other materials. The terms and conditions mentioned within the agreement outline the rights, responsibilities, and obligations of each party throughout the lease period. The Houston, Texas Underground Storage Lease and Agreement (Surface and Minerals) encompasses a range of important aspects, including but not limited to: 1. Purpose: This section defines the purpose of the lease, emphasizing the intended use of the underground storage space, such as storing natural gas, petroleum products, or other substances. 2. Definitions: This section provides an extensive list of definitions clarifying the terms used within the agreement, including surface rights, mineral rights, storage space, surface facilities, and encroachments, among others. 3. Grant of Lease: This clause identifies the specific space being leased and grants the lessee the exclusive right to use the underground storage area in Houston, Texas for the agreed-upon purpose. 4. Term and Extension: This section outlines the duration of the lease and specifies whether there are any options for extensions or renewals. 5. Rental Payments: The agreed-upon rental payments, including frequency and method of payment, are detailed in this section. 6. Surface Rights: This clause covers the rights and restrictions associated with the surface area above the underground storage space, including any considerations for construction, maintenance, and access to the surface facilities. 7. Mineral Rights: The lessee's rights and responsibilities concerning minerals found in the leased underground storage area are outlined here, including provisions for exploration, extraction, and royalties. 8. Maintenance and Alteration: This section governs the maintenance and alteration responsibilities of both the lessor and lessee, addressing issues like repairs, upgrades, and safety measures. 9. Indemnification and Liability: This clause stipulates the indemnification obligations of both parties, protecting each from liabilities arising from accidents, environmental damages, or third-party claims related to the underground storage activities. 10. Termination: This section specifies the conditions under which the lease agreement may be terminated, addressing default, breach, or agreement expiration. Variations of the Houston, Texas Underground Storage Lease and Agreement (Surface and Minerals) may arise based on specific industries or commodities being stored, such as natural gas storage agreements, petroleum storage agreements, or chemical storage agreements. However, the fundamental purpose and key components mentioned above remain consistent across these variations.
Houston Texas Underground Storage Lease and Agreement (Surface and Minerals)
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FAQ
Usually, the owner of the surface estate owns the mineral rights under the property. However, under Texas law, those rights can be sold or leased to another party.
Non-Producing Mineral Rights Value in Texas As a general rule of thumb, the value for non-producing mineral rights will nearly always be less than $1,000/acre. In most cases, the mineral rights value in Texas for non-producing minerals will be $0 to $250, but producing minerals ? $25,000+ per acre is not unusual.
Since the mineral estate includes any minerals within the land, under the surface, the mineral estate owner is the only one with rights to any and all minerals there. When not specifically retained, mineral estates normally pass to the owner of the surface estate in a sale.
The only way to determine your rights is to conduct a search of the public land records in the county where the property is located. All the deeds conveying the property must be reviewed.
75.101. PRESUMPTION OF ABANDONMENT. (a) All mineral proceeds that are held or owing by the holder and that have remained unclaimed by the owner for longer than three years after they became payable or distributable and the owner's underlying right to receive those mineral proceeds are presumed abandoned.
One quick and dirty approach is the ?rule of thumb.? Those following the rule of thumb say that mineral rights are worth a multiple of three to five times the yearly income produced. For example, a mineral right that produces $1,000 a year in royalties would be worth between $3,000 and $5,000 under the rule of thumb.
Mineral interests are defined by the Texas Property Tax Code as real property and are subject to taxes the same as all other real property.
When it comes to mineral rights, the standard admonition has long been consistent and emphatic: Avoid selling them. After all, simply owning mineral rights costs you nothing. There are no liability risks, and in most cases, taxes are assessed only on properties that are actively producing oil or gas.
If you're interested in who owns your Texas Mineral Rights located below your property, the best place to start is your local County Clerk's Office?not only is this a free resource; they typically have some of the most up-to-date information you can find.
But, if after 10 years the mineral rights are not being exploited (there is no oil and gas exploration or production), then the mineral rights revert to the new surface owner.