Ownership regarding Oil & Gas:

     This page is continued from Property >>>>Ownership >>>> Various Forms of Ownership, Interest, and Estates:


ownership-in-place theory – used in a majority of jurisdictions: holds that the owner has the right to present possession of the oil and gas, as well as the right to use the land surface to search, develop, and produce from the property, but that the interest in the minerals terminates if the oil and gas flows out from under the owner’s land.

nonownership theory – used in a minority of jurisdictions, holds that the owner of a severed mineral interest does not have a present right to possess the oil and gas in place but only to search for, develop, and produce it.


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