Buying land in Grayson County raises a big question right away: do the mineral rights come with the property? If you have heard phrases like “surface only” or “minerals reserved,” you are not alone. The way mineral, surface, and water rights work in Texas can affect both value and how you use the land day to day. In this guide, you will learn the basics, what deed language means, and the due diligence steps that help you buy with confidence. Let’s dive in.
Mineral rights 101 in Grayson County
In Texas, the mineral estate and the surface estate are separate property interests. The mineral estate is traditionally considered the dominant estate, which means a mineral owner, or a company leasing from that owner, has broad rights to explore and produce oil and gas consistent with the lease and state law. The surface estate covers everyday land use like homes, fences, crops, roads, and ponds.
Minerals can be “severed” from the surface by past deeds, so one person can own the surface while someone else owns all or part of the minerals. A mineral owner can also lease the minerals to an operator. In a lease, the operator gains the right to explore and produce, and the mineral owner typically receives royalty payments defined by the lease.
Water rights vs. mineral rights
Water and minerals are not governed the same way in Texas. Surface water use often requires state authorization, while groundwater is generally managed under the rule of capture, with added rules from local Groundwater Conservation Districts. This means your right to pump groundwater can be subject to local regulations.
If you plan to drill or use an existing water well, check local rules early. Also note that industrial uses, including oil and gas operations, can require separate permits or contracts. Treat water rights as a different track from mineral rights in your planning.
How deeds convey rights
Common deed phrases
Conveyance language controls what you receive. Wording like “all oil, gas and other minerals” usually means mineral rights convey to you, subject to prior recorded exceptions. Phrases such as “excepting and reserving all oil, gas and other minerals” or “minerals reserved unto grantor” mean the seller keeps the minerals and you receive surface rights only. Deeds also often say “subject to any mineral rights of record,” which puts you on notice to review the chain of title.
Fractional and depth splits
In North Texas, it is common to see fractional interests or depth severances. For example, minerals below a certain depth might be reserved, while shallower rights convey. Over time, multiple heirs or owners may each hold undivided shares, which can make ownership more complex to confirm.
Active leases and surface use
If a recorded lease covers the tract, the lessee may have rights to explore and produce during the lease term. Operators are usually allowed reasonable surface use necessary for production under the lease and Texas law. Courts recognize the accommodation doctrine, which can require operators to accommodate existing surface uses when reasonable alternatives exist, but exact outcomes depend on facts and documents.
What reservations mean for you
When a prior deed reserved minerals, the mineral owner keeps the right to lease and to receive royalties. You, as the surface owner, could see operations such as access roads, well pads, pipelines, or storage facilities if development proceeds and the lease allows it. Your ability to place improvements could be limited by these rights.
Pooling or unitization can also affect royalty calculations and who can produce from a given area. Ask whether any pooling orders or unit agreements apply and how royalties are divided. If the seller claims royalty income, request division orders and proof of payments for review.
Due diligence checklist
Use this focused checklist before you make an offer or during your option period.
Records to review:
- Complete chain of title from the Grayson County Clerk, including prior deeds and any mineral reservations or assignments.
- Any recorded oil, gas, or mineral leases and lease assignments.
- Recorded easements, pipeline or flowline agreements, rights-of-way, and surface-use agreements.
- Grayson Central Appraisal District records for parcel descriptions and any separate mineral assessments.
- Railroad Commission of Texas records for nearby wells, permits, operators, and production history.
- Any division orders or royalty statements if the seller receives royalties.
- Current survey, metes-and-bounds, and any plats.
Inspections and contacts:
- Title commitment or a mineral title opinion that identifies ownership and exceptions.
- Seller’s mineral owner affidavit and copies of all leases, pooling orders, unit agreements, and communications from operators.
- A specialized oil and gas title run if minerals are important to your price or plan.
- Engage a local oil and gas attorney or experienced landman to interpret reservations and lease terms.
- Walk the property to note access roads, well pads, tanks, pipelines, or reclaimed sites.
- Check local Groundwater Conservation District rules for well permitting and pumping limits.
Questions for the seller:
- Do you own any portion of the minerals? If yes, what fraction and under which deeds?
- Are there any recorded reservations or separate mineral conveyances affecting this tract?
- Are there active or prior leases, pooling or unit agreements, or assignments? Any recent permits or notices to drill?
- Are royalty payments being received or claimed? Any unpaid royalties or liens?
- Are there surface agreements, pipeline easements, or environmental reclamation issues?
- Who pays property taxes, and are there mineral-related assessments?
Contract protections to consider:
- A title-related contingency specific to mineral ownership and recorded exceptions.
- A right to terminate or adjust price if minerals are reserved or if an active lease exceeds a defined scope.
- Seller representations and warranties about mineral ownership and leases, with remedies for undisclosed claims.
- Survey confirmation for boundaries and any encroachments or pipeline corridors.
- If purchasing minerals, provisions for royalty escrow or transfer of division orders at closing.
Local records and resources
In Grayson County, start with the Grayson County Clerk for the official deed chain and recorded leases or easements. Use the Grayson Central Appraisal District to confirm parcel descriptions and whether minerals appear separately. Check the Railroad Commission of Texas for well permits, status, operators, and production data. Review groundwater rules with the Texas Water Development Board and any local Groundwater Conservation Districts. For complex chains, engage local landmen, title examiners, and oil and gas attorneys.
Practical takeaways
- Do not assume minerals follow the surface. Verify what conveys in writing.
- An active lease can allow near-term operations that affect surface use and building plans.
- Fractional ownership and depth severances are common and can be complex.
- Water rights are a separate track from minerals and come with their own rules.
- A structured review of deeds, leases, RRC records, a title commitment, and seller affidavits reduces surprise risk.
If you want a steady, local partner for rural acreage in Grayson County, our broker-led team can help you evaluate deed language, coordinate title and survey work, and connect you with trusted landmen and attorneys. Reach out to Bois D'Arc Realty to talk through your plans and next steps.
FAQs
Do Grayson County land purchases include mineral rights?
- Not always. Minerals may have been reserved by a prior owner or split among several owners, so you need the deed chain and title review to confirm what conveys.
How can a surface-only owner be affected by drilling?
- An operator under a valid lease may use the surface in reasonable ways for production, which can include roads, well pads, and pipelines, subject to lease terms and applicable law.
What does pooling mean for a Grayson County tract?
- Pooling or unitization combines tracts for production and divides royalties by formulas in the lease or order, affecting how payments are calculated and shared.
Are water wells part of mineral rights in Texas?
- No. Water rights are separate from mineral rights and are managed under different laws, including local Groundwater Conservation District rules and state surface water permitting.
What contract terms help a buyer manage mineral risk?
- Include mineral-specific title contingencies, seller warranties about mineral ownership and leases, and clear rights to terminate or adjust price if reservations or lease scope do not meet expectations.
