Minerals
Underwriting Manuals
Standard Exceptions
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Table of Contents
MIN
Minerals
"Minerals" include many valuable subsurface rights or interests, such as oil and gas. The definition varies and should not be clarified except as stated in the instrument. Those rights may include the right to use the surface for exploration or development. You should not interpret the instrument, trace the ownership of the interest, or separately insure mineral rights (unless you secure approval from the Company). Where the Policy refers to excepted minerals in the Schedule A description, the Company also prefers to except to the minerals in Schedule B. If possible, you should insure only the "surface estate" in Schedule A, if all minerals are outstanding and you should then except to all minerals in Schedule B.
Exceptions
MINX01
ALTA
10/19/2011
V
3
Grant of Undivided Interest in Minerals or Subs
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.
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.
See Underwriting Manual
MINX02
ALTA
10/19/2011
V
3
Grant of Minerals or Substances
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.
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.
See Underwriting Manual
MINX03
ALTA
10/19/2011
V
3
Reservation of Undivided interest in Minerals o
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.
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.
See Underwriting Manual
MINX04
ALTA
10/19/2011
V
3
Reservation of Minerals or Substances
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.
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.
See Underwriting Manual
MINX05
ALTA
10/19/2011
V
3
Oil and Gas Lease
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.
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.
See Underwriting Manual
MINX06
ALTA
10/19/2011
V
3
Specific Substance Lease
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.
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.
See Underwriting Manual
MINX07
ALTA
10/19/2011
V
3
Separate Mineral Taxation (General)
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.
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.
See Underwriting Manual
MINX08
ALTA
10/19/2011
V
4
Separate Taxation (Specific)
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.
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.
See Underwriting Manual
MINX09
ALTA
10/19/2011
V
3
Minerals Located Below Stated Depth
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.
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.
See Underwriting Manual
MINX10
ALTA
10/19/2011
V
3
Community or Pool Lease
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.
Comment: This exception applies to a community oil and gas or pooling agreement.
See Underwriting Manual
MINX11
ALTA
10/19/2011
V
3
Surface Waiver
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.
Comment: You should use this provision with the mineral exception only if the waiver is unconditional and is signed by all mineral owners.
See Underwriting Manual
MINX12
ALTA
10/19/2011
V
3
Conditional Surface Waiver
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.
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.
See Underwriting Manual
MINX13
ALTA
10/19/2011
V
3
Possible Surface Waiver
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.
Comment: You should use this exception if you are not satisfied or willing to determine that all mineral owners joined in the surface waiver.
See Underwriting Manual
MINX14
ALTA
10/19/2011
V
3
Mining Claims Broad Exception
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.
Comment: This is a standard exception used in some western states relating to patent reservations, mining claims, and water rights.