By The Eldorado Mineral Partners team · Last reviewed June 2026
The parties and the granting clause
A deed names a grantor (who’s conveying) and a grantee (who’s receiving), then a granting clause — “grants, sells, and conveys” — that actually transfers the interest. The verbs matter less than what follows them: the description of the property and the precise interest being handed over.
The legal description: where the minerals are
Minerals are located by legal description, not a street address. In most of the West that’s the Public Land Survey System — section, township, and range (e.g., “the NW/4 of Section 14, Township 152 North, Range 95 West”). In parts of Texas and the East you’ll see metes-and-bounds or lot-and-block instead. This description pins the deed to a specific tract on the ground, and it’s how a county clerk (or we) trace your chain of title.
The interest conveyed — and the words that shrink it
Read carefully here, because this is where ownership is really defined. A deed may convey all of the minerals, or a fraction (“an undivided one-half interest in and to all of the oil, gas and other minerals”). Crucially, a fraction of the minerals is not the same as a fraction of the royalty — confusing the two is the single most common mistake we see owners (and careless buyers) make.
Then watch for reservations and exceptions: language where the grantor keeps something back (“grantor reserves an undivided 1/2 of the royalty”). A reservation carves value out of what you’re receiving, so it’s as important as the granting clause itself.
Half the minerals and half the royalty are different animals. If a deed says “royalty,” you may have no right to lease or to bonus — only a share of production.
“Subject to,” the habendum, and the warranty
A deed is often made “subject to” an existing lease — that doesn’t reduce your ownership, it just acknowledges the minerals are currently leased. The habendum clause (“to have and to hold”) defines the duration, usually forever for a mineral conveyance. Finally, the warranty tells you what the grantor promised about title: a general warranty defends against all claims, a special warranty only against the grantor’s own acts, and a quitclaim promises nothing — it conveys whatever the grantor had, which might be everything or nothing.
Educational content, not legal, tax, or investment advice — your facts are specific, so involve your attorney and CPA before deciding anything. We’ll gladly work with them.