Carrizo Ranch, located in Northeast Arizona, not far from the town of St. Johns, is a collection of lots, most roughly 40 acres in size, owned by private parties across the nation (and indeed even across the world). The greatest majority of the lots on Carrizo Ranch are split estate lots, meaning that the surface rights and the mineral rights are owned by separate parties (the exceptions are about three lots in township 14 N, range 29 E, section 20, and also all of township 14 N, range 28 E, section 21). The mineral rights to most all of Carrizo Ranch are currently held by the Burlington Northern Sante Fe Railroad Company. This essay documents some of the implications of this arrangement.

To understand what is presented here, it is important to have at least a rudementary understanding of townships, ranges, and sections. This brief overview is provided. Please read this first.

History

Back in 1866, the U.S. Governement had a problem. It needed a Railroad from Missouri and Arkansas to the Pacific coast, but the railroad company (then Santa Fe Railroad Company) had determined that the cost would be too great. A deal was reached, however, whereby Congress would grant odd numbered sections of land to Santa Fe, along the railroad route, to compensate it for the expense of building the railroad. Sometime during Theodore Roosevelt's presidency, the railroad was completed, and so the promised sections were given to the Santa Fe Railroad company. The act of Congress that granted the Arizona portion of these lands to Santa Fe, is here.

Most of the lands that are today Carrizo Ranch remained in the railroad's possession until the 1950s. At that time, the railroad began selling what is today Carrizo Ranch to private Ranchers. This essay does not track the transfer of all of the lands that are today Carrizo Ranch into private hands, but it does track a good deal of it. Specifically, in 1950, the railroad sold 18,107 acres to one H. J. Platt. When it sold this land, it retained for itself all mineral rights (and railroad rights), and this decision is the source of our split titles today. The terms in the Platt deed cover most of Carrizo Ranch, with the remainder of the Ranch likely under very similiar conditions. The Platt deed is particularly important, then, because it is the document that defines and governs the terms of the mineral rights on Carrizo Ranch. This deed is here.

In 1999, the Platt family sold land to Carrizo Ranch, LLC.

Summary of BNSF's Rights

As stated above, the railroad's mineral rights are defined and governed by the Platt deed (which is here). Summarizing the rights contained therein, BNSF, or its assignees, may at any time:

• Prospect and mine for any minerals whatsoever.
• Use as much of the surface as is "reasonable" for shafts, mines, etc, needed for the extraction of any minerals.
• Construct railroads, water tanks, pipelines, etc, on the surface.
• Construct telephone or telegraph lines across the surface.

However, if BNSF, or its asignees, appropriate the surface in this way, they must:

• Compensate the owner of the surface for appropriated land. Unfortunately, the compensation is fixed at the price originally paid by H. J. Platt, which is about $1.16 per acre.
• If, however, buildings or other permanent structures need to be destroyed, BNSF (or its assignees) must agree with the owner as to the value of the building, and must compensate the owner accordingly. If the owner and BNSF (or assignees) cannot agree on an appropriate price, then three appraisers are appointed (see the deed for details).

Prize Energy Lease

In 2004, the railroad leased some of its mineral rights for over 450,000 acres, all in Apache county, to Prize Energy Resources, LP. The lease covers oil, gas, and a few other things, but specifically excludes coal and uranium. Unfortunately, most of the details of the lease are private. The recorded document, however, is here. This lease covers all of Carrizo Ranch, except those few lots mentioned above.

How Likely is it that Mines will be Established?

I cannot answer this question, but I can provide a little bit of anecdotal evidence. Obviously, the best defense against these mineral rights is to have nothing of value beneath our land. To see if this is the case, it makes sense to look at known mineral deposits in the state of Arizona. My research into this question is here.

One other item of note is the fight over coal that occurred between SRP and the Zuni Tribe. The Zuni Tribe is located in New Mexico, not far from the Ranch. There exists known coal deposits there, and SRP needed that coal to fire the Coronado Generating Station (the power plant that we all know and love). A many years long fight erupted between SRP and the Zuni Tribe, which did not want a coal mine on its lands (note: SRP had mineral rights to this land). The Zuni Tribe eventually won, and this is documented in this article. I believe that if SRP had any reason to believe that Carrizo Ranch had any coal deposits, they would have gone after them (after all, the land is right next to the power plant, and railroad tracks are already in place).