Frequently
Asked Questions: Mineral Rights
How are landowners in charge of mining and extraction of coal in Ohio?
Surface Rights:
Surface rights are given to individuals or companies that are entitled to use everything above ground on a given parcel of land. This includes developing coal mines above ground, building houses, and creating other forms of development.
Mineral Rights:
If you own mineral rights on a given parcel of land, you are entitled to ownership of all subsurface minerals and resources on that parcel of land.
This allows you to sell or lease your rights to coal companies and other mining companies to extract resources below your land.
You’ll also want to know that ownership can expire for entities holding the mineral rights to someone else’s land. As part of Ohio’s Dormant Mineral Act, your mineral rights would revert to you if the holder doesn’t produce anything within 20 years.
How are mineral rights taxed in Ohio?
The State of Ohio taxes mineral rights in a similar manner to taxing other pieces of land and real estate, by taxing once every year.
The amount of taxation that a landowner must pay is decided by the amount of production the minerals under your land produce, if there is any production at all.
Selling mineral rights comes with a hefty corporate gains tax, but this tax only applies once during the selling of the rights.
How can I profit from mineral rights while also protecting my land?
Blindly leasing or selling mineral rights on a parcel of land may sound convenient, but in order to protect the value of land and viewshed of the parcel, it is recommended for landowners to agree to certain stipulations and conditions before signing any binding contracts or documents. Below are a couple of examples of conditions that can benefit the landowner and protect the environment:
It may be beneficial to only sell a portion of mineral rights on any given parcel, to reduce the potential for damage to land and mitigate risk associated with coal extraction.
Understanding the geological makeup of your parcel:
This is a big deciding factor in determining the value of a given parcel’s value regarding mineral rights. Understanding the geological makeup of a parcel and factoring in things like Shale rock deposits and soil/bedrock composition is crucial in maintaining a safe and profitable operating procedure.
Who regulates the processes of coal mining and processing in Ohio?
Along with associated state and federal regulations, the Ohio Department of Natural Resources has authority to regulate the process of coal mining and coal processing in the state of Ohio.
Are there areas where a landowner cannot sell his mineral rights or surface rights?
There are various restrictions on where and where you can not sell mineral or surface rights on your land. These are all covered under the Ohio revised code and can be found by following the link below.
