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Reserving Mineral Rights to a Portion of a Parcel

Posted: Mon Jul 08, 2019 12:31 pm
by Robert Martin
If somebody wanted to sell a 40 acre parcel, and they want to reserve the mineral rights to only 10 acres of the parcel, and the reservation is going to be incorporated in the grant deed... is that a violation of the SMA?

Thank you in advance for any info!

Re: Reserving Mineral Rights to a Portion of a Parcel

Posted: Mon Jul 08, 2019 1:00 pm
by Warren Smith
SMA section 66424 defines "Subdivision", and section 66412(b) excludes mineral, oil, or gas leases.

While silent about severing mineral rights - easements and other lesser interests than fee absolute are commonly granted outside the provisions of the SMA.

Assessor's offices will create a separate parcel for assessment purposes of mineral rights (but they do that for different tax rate areas too).

Re: Reserving Mineral Rights to a Portion of a Parcel

Posted: Tue Jul 09, 2019 7:04 am
by steffan
Robert,

there are some provisions regarding mineral rights found in the Civil Code, Sections 801 5), 848, and 883.110-883.270.

Even if held by a separate entity outright (not by lease), I understand these types of rights to be servitudes and not separate parcels of land.

Re: Reserving Mineral Rights to a Portion of a Parcel

Posted: Tue Jul 09, 2019 11:39 am
by marchenko
No it is not a violation of the SMA.