I own surface & mineral in Howard County, TX. I was advised to sever the mineral rights in case someone got injured while drilling, walking on the land etc. I was told they would not only come after the big company but also the land owners & could take the minerals??
There is not a much case law on this, but it is a point of increased concern. Many oil companies keep the lease assets in one company and the operating company has few assets. To do this, you should consider an LLC or an LP with and LLC as general partner to hold the surface. You will need to file with State of Texas. This severance would also make it easier to collect damages for surface and to be paid for water use. Too often oil and gas leases allow free use of surface and water. Water is increasingly valuable. Some are severing water rights into separate entity to protect it from surface liabilities. You should consider legal help for proper corporate documentation and deeds.
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