May a seller of land who reserves a one-half interest in mined minerals excavated under the surface demand income from material that is not specifically defined as a mineral in the grant deed containing the reservation?

Vulcan Lands Inc. v. Older Currier

Facts: A seller of land previously excavated for minerals including sand and gravel sells the land to a buyer, reserving a one-half interest in any oil, minerals, gas, or other hydrocarbons excavated under the surface. The buyer begins a mining operation to collect sand and gravel. The seller demands one-half interest in the proceeds of the mineral operations. The buyer seeks to quiet title to retain all proceeds of the mineral operations.

Claim: The buyer claims they are entitled to all the proceeds of their operation since sand and gravel do not qualify as minerals.

Counterclaim: The seller claims they are entitled to one half of the proceeds from the buyer’s excavation of sand and gravel since these materials were previously mined on the property and therefore qualify as minerals.

Holding: A California appeals court holds the seller retained the underlying mineral rights and is entitled to one-half interest in the proceeds since sand and gravel are minerals due to prior excavation of sand and gravel on the property. [Vulcan Lands, Inc. v. Currier (2023) 98 CA5th 113]

Vulcan Lands Inc. v. Currier