A mineral deed transfers all ownership rights in the assets under the surface of a tract of land—including oil, gas, coal, hydrocarbons, metals, and minerals—from the grantor (seller) to the grantee (buyer). The transfer also includes all rights to receive royalties, profits, or payments related to the assets under the surface of the land.
In Colorado, a mineral deed is a legal document that transfers ownership of minerals beneath the surface of a tract of land from the grantor to the grantee. This includes not only solid minerals but also oil, gas, and any other hydrocarbons. The rights conveyed by a mineral deed typically include the right to explore, extract, and sell the minerals, as well as the right to receive any royalties, rents, or bonuses associated with the minerals. The deed must be in writing, signed by the grantor, and must contain a legal description of the property. It must also be recorded with the county clerk and recorder in the county where the property is located to be effective against third parties. Colorado follows the 'Dominant Estate' principle, meaning that the mineral estate is considered dominant over the surface estate, and thus the mineral owner or lessee has the right to use as much of the surface as is reasonably necessary to extract the minerals. However, Colorado law also requires mineral owners and operators to accommodate existing surface uses where possible.