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Untangling eminent domain and mineral rights

On Behalf of | Nov 5, 2024 | Eminent Domain

The area around Southern California, including parts of Riverside and San Bernardino, is historically known for its rich mining diversity, especially for minerals such as gold, silver, copper and other rare earth elements. So, it will come as no surprise if you discover that your land also has some valuable minerals underneath it.

However, the situation becomes quite complicated when the government suddenly exercises its power of eminent domain on your property, leaving you to wonder if the acquisition covers the area underneath your land.

Let us look at the salient issues when such a thing happens.

Mineral rights vs surface rights

Mineral rights are separate from surface rights. Surface rights are your rights to the land, while mineral rights are your rights to the resources underneath your land. Buyers must purchase mineral rights separately to own the resources underneath the land they buy.

Inclusion in eminent domain

The government typically acquires all associated rights with the land, including mineral rights, when it acquires a property through eminent domain. Include the mineral rights in the sale details, whether you want to retain them or the government is not interested in them. Of course, the government must pay just compensation for all the rights it buys. Appraise each value separately, and ensure you receive payment for both. Also, you can stop the acquisition in only a limited number of ways.

Belated discovery of minerals

However, what happens if you discover minerals only after the government buys your property? Hence, if your property faces eminent domain, you must survey it before agreeing to a sale.

If the government already bought your property, you could try proving there was fraudulent concealment and that the government knew of the minerals’ existence. However, it did not disclose it during the sale, giving you grounds for legal action.

Protecting your interests

Suppose you suspect the government did not pay you just compensation or was not truthful in dealing with you. In that case, you may consult an experienced eminent domain lawyer to help protect your rights.