Definition - What does Mineral Deed mean?
A Mineral Deed is a legal document which contains the details about the transfer of any mineral rights, royalty interests and overriding royalty interest owned by any royalty interest owner to oil and gas mineral acquisition organizations or any drilling organization with a warranty of title or without a warranty of title. If the title is not warranted in a legal document, then this mineral deed is considered as a quitclaim deed.
Petropedia explains Mineral Deed
In the oil and gas industry, the entity who owns the mineral rights is called the grantor and when the grantor transfers royalty interests to another entity, the other entity is called the grantee. In simple terms an owner of the property or a grantor can own surface area of the property as well as minerals down below the property. Both the surface area of a property and the minerals below this surface area are treated as two separate legal interests. If these rights need to be transferred to any other entity, such as oil and gas operating organizations or minerals and royalty acquisition organizations, it can be done by signing the mineral deed which legally conveys the actual rights to the minerals while still remaining separate from the surface rights.