Selling vs Leasing: advantages and disadvantages

Posted on Wednesday, November 25th, 2015 at 8:15 pm    

After you come to learn that minerals have been located on your property, you may want to consider selling or leasing those mineral rights. Here are a few key points for both selling and leasing that may help you determine which will be right for you.

Selling your mineral rights will afford you solid and assured benefits in the form of a fixed payment. You will not have to stress over rising or decreasing values. On the other hand, you may give up your rights to receive royalty payments from the mining and selling of the materials on your property. Should the value of the minerals go up, your payment will not change to reflect this.

Leasing your mineral rights usually involves creating a contract that outlines the rights both you and the oil or gas company with which you make the deal will enjoy, including the terms of the royalty payments you will receive. When leasing your mineral rights, you will receive compensation from a company just as you would were you to sell them. Leasing, however, involves an arrangement of monthly payments that only last the predetermined amount of time. While this option affords you the chance to earn more should the value of your mineral increase, it also poses the risk of decreased payments when values decrease.

If you are considering selling or leasing your mineral rights, it is best to consult with our mineral rights specialists at The Mineral Auction in order to discuss which option will work best for you. Call us today at (512) 698-2802 to speak to a representative.

Recent Mineral Rights Posts

Jan
09
Who might buy your mineral rights

Selling mineral rights is much more different than selling most items or property. It goes further t... Read More

Jan
05
Cautions before selling mineral rights

The world of mineral rights is highly marketable, which is one of the reasons companies work hard ... Read More

Sep
12
Permian Basin: A remarkable natural gas and oil discovery

Oil and gas exploration company Apache, based in Houston, Texas, announced on Wednesday, September 7... Read More

Ready to get started? Call us today - (512) 698-2802