Non-Executive Mineral Interest
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A non-executive mineral interest is “an interest in oil and gas that lacks the right to join in the execution of oil and gas leases and (probably) the right to develop.” H. Williams & C. Meyers, Oil And Gas Terms 616 (7th ed 1987). The Alabama Supreme Court essentially recognized a non-executive mineral interest in the case of McCall v. Nettles, 37 So.2d 635 (Ala. 1948), but did not label the interest as such. In deed in the McCall case contained the following language:
McCall v. Nettles, 37 So.2d at 637.
The court applied rules of construction normally used in construing wills, that is: an unrestricted devise of rents, income, and profits from land for a fixed period or without limitation as to time carries an estate in the property for the period of the devise. Thus the court found “the deeds reserve an interest in the minerals themselves as they are imbedded in the ground before there is an effort to extract them.” Id.
The court further commented on the ensuing relationship between the grantor and the grantee as follows:
Copyright 2011 by Edward G, Hawkins. All rights reserved.