Minerals

A grant of an undivided _________(%) interest in __________, by document recorded __________, together with appurtenant rights to use the surface of the Land. The Company makes no representation as to the present ownership of this interest.
Comment: This exception refers to an instrument granting an undivided interest in certain minerals or other substances. The exception should use the same description of the minerals (e.g., “minerals,” “oil, gas, and other minerals,” etc.) as is used in the deed. Unless the instrument is very clear, you should not state the percentage interest granted.

A grant of ____________, by document recorded ____________, together with the appurtenant rights to use the surface of the Land. The Company makes no representation as to present ownership of this interest.
Comment: This exception refers to an instrument granting certain minerals or other substances. It does not state the percentage interest granted. The exception should use the same description of the minerals (e.g., “minerals,” “oil, gas, and other minerals,” etc.) as is used in the deed.

Reservation of an undivided _________(%) interest in ____________, by document recorded ____________, together with the appurtenant rights to use the surface of the Land. The Company makes no representation as to the present ownership of this interest.
Comment: This exception refers to an instrument reserving an undivided interest in certain minerals or other substances. The exception should use the same description of the minerals (e.g., “minerals,” “oil, gas, and other minerals,” etc.) as is used in the deed. Unless the instrument is very clear, you should not state the percentage interest that is reserved.

A reservation of ____________ by documents recorded ____________, together with the appurtenant rights to use the surface of the Land. The Company makes no representation as to the present ownership of this interest.
Comment: This exception refers to an instrument reserving certain minerals or other substances. It does not state the percentage interest reserved. The exception should use the same description of the minerals (e.g., “minerals,” “oil, gas, and other minerals,” etc.) as is used in the deed.

An oil, gas and mineral leas, executed by ____________ as lessor and ___________ as lessee, recorded ______________.
Comment: This description refers to an oil and gas lease. Unless the lease applies only to oil, gas, and other minerals, you should not use this exception, since it does not extend to other substances that are not oil, gas, or minerals.

A(n) ___________ lease, executed by _____________ as lessor and ______________ as lessee, recorded ______________.
Comment: This exception refers to a lease of minerals or other substances. The exception should use the same description of minerals or substances (e.g., “minerals,” “oil, gas, and other minerals,” “coal and lignite,” etc.) as is used in the lease.

Liability, if any, arising from the lack of distinct and separate tax assessments of the Land and the mineral, gas, or oil estates, interests or leases.
Comment: If the land contains producing minerals that are not separately taxed, the taxing authority may later retroactively assess taxes against the surface owner who has mineral rights.

Liability, if any, arising from the lack of distinct and separate tax assessments of the Land and the ________ estate, interest, or leases.
Comment: If the land contains producing substances that are not separately taxed, the taxing authority may later retroactively assess taxes against the surface owner who has an interest in the substances. The substances (e.g., “oil and gas,” “coal,” etc.) should be identified.

The document recorded ___________ states that if affects that portion of the Land lying below a depth of __________ feet from the surface of the Land.
Comment: A lease or grant of minerals sometimes applies only to such substances below a stated depth. However, this exception is not appropriate if the mineral reservation only waives the surface rights to such depth.

A community oil and gas lease, executed by ______, as lessor and _______ as lessee, recorded _____________.
Comment: This exception applies to a community oil and gas or pooling agreement.

The right of surface entry and exploration has been waived or released by document recorded _________________.
Comment: You should use this provision with the mineral exception only if the waiver is unconditional and is signed by all mineral owners.

The right of surface entry and exploration are subject to the terms contained in document recorded ____________
Comment: You should use this provision with the mineral exception if the waiver contains conditions (e.g., right to locate, etc.) and is signed by all mineral owners.

Terms and provisions of that surface waiver agreement executed by _________, recorded _________.
Comment: You should use this exception if you are not satisfied or willing to determine that all mineral owners joined in the surface waiver.

Unpatented mining claims; reservations or exceptions in patents, or an act authorizing the issuance thereof; water rights claims or title to water.
Comment: This is a standard exception used in some western states relating to patent reservations, mining claims, and water rights.

An undivided ____________ mineral and/or royalty interest, and the royalties, bonuses, rentals and all other rights in connection with this interest, described in the instrument recorded ____________, together with the appurtenant rights to use the surface. The Company makes no representation as to the present ownership of this interest.
Comment: This exception refers to an instrument granting or reserving an undivided interest in minerals. Unless the instrument is very clear, you should not state the percentage interest that is granted or reserved. Unless the instrument clearly describes only minerals, do not use this exception, since it does not extend to other substances that are not minerals under state law.

Mineral and/or royalty interest, and the royalties, bonuses, rentals and all other rights in connection with this interest, described in instrument recorded ____________, together with the appurtenant rights to use the surface. The Company makes no representation as to the present ownership of this interest.
Comment: This exception refers to an instrument granting or reserving minerals. Unless the instrument clearly describes only minerals, you should not use this exception, since it does not extend to other substances that are not minerals under state law.

Coal, mineral and/or royalty interest, and the royalties, bonuses, rentals and all other rights in connection with this interest, described in the instrument recorded ____________, together with the appurtenant rights to use the surface. The Company makes no representation as to the present ownership of this interest.
Comment: This exception refers to an instrument granting or reserving coal and minerals. Unless the instrument clearly describes only coal and minerals, you should not use this exception, since it does not extend to other substances that are not coal or minerals.
See

Terms and provisions of the _________________ lease from ____________, lessor to ____________, lessee, recorded ____________. The Company makes no representation as to the present ownership of this interest.
Comment: This exception refers to a lease of minerals or other substances. The exception should use the same description of minerals or substances (e.g., “minerals,” “oil, gas, and other minerals,” “coal and lignite,” etc.) as is used in the lease.

Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests.  There may be leases, grants, exceptions or reservations of interests that are not listed.

Comment: You should add the above exception in Schedule B of each Commitment, Binder, or Policy, other than a Short Form Loan Policy, unless you secure Underwriter approval to remove or modify the exception, or as otherwise directed in a bulletin.  Deletion or modification of the exception generally will be based upon an extended search and examination required by the Underwriter and/or consideration of any state law reserving mineral or similar rights apart from patent reservations.

Subject to all coal and mining rights and all rights relating thereto:  THIS DOCUMENT DOES NOT INCLUDE OR INSURE THE TITLE TO THE COAL AND THE RIGHT OF SUPPORT UNDERNEATH THE SURFACE OF THE LAND DESCRIBED OR REFERRED TO HEREIN AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMPLETE AND LEGAL RIGHT TO REMOVE ALL SUCH COAL AND, IN THAT CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDING OR OTHER STRUCTURE ON OR IN SUCH LAND.  THE INCLUSION OF THIS NOTICE DOES NOT ENLARGE, RESTRICT OR MODIFY ANY LEGAL RIGHTS OR ESTATES OTHERWISE CREATED, TRANSFERRED, EXCEPTED OR RESERVED BY THIS INSTRUMENT.  Policy does not insure against subsidence.