Selling mineral rights is much more different than selling most items or property. It goes further than having someone pay for the item and transferring the title of ownership. When you sell your mineral rights, you are transferring all your rights to use the minerals in or underneath the property—excluding use to the buildings or surface—to the buyer. Here are some types of mineral rights buyers:
- Mining companies – Mining companies purchase mineral rights for future reserve or for mineral extraction. They conduct the production several years after the date purchase and sometimes even later.
- Investors – This type of buyer usually doesn’t intend to conduct the mineral extraction themselves. They are simply buying the property as an investment and will then sell it to a mining company, who will be the one to operate in the extraction.
Owners who are new in the industry and are planning to sell or lease their mineral rights in Austin can take advantage of the services of our team of professionals at The Mineral Auction. Our experienced and knowledgeable staff can assist you and help you get a better understanding of your options. Get in touch with us today at (512) 698-2802 for more information.
The world of mineral rights is highly marketable, which is one of the reasons companies work hard in the hunt of profitable mineral resources. If you are looking to sell your mineral rights, you may want to consider the following cautions listed by SF Gate:
- Future Value – Since mineral resources produce a lot of money, consider first the future of your mineral properties. There may come a time when its value exceeds normal expectation after you sell the rights, and you may not be the one reaping benefits.
- Estate Planning – Mineral rights and properties may be a great monetary source for future generations. If you sell the rights, your family will not be able to benefit from future production.
- Property Damages – Production of mineral properties often require heavy machinery and equipment. These barriers may interfere with other purposes you could have for your land, since you do not own the mineral rights anymore. When you retain mineral rights, you have sole control of your land.
If you are looking to enter the complicated world of mineral rights, please consult with our lawyers at The Mineral Auction. Call our Austin office at (512) 698-2802 to learn more about our practice.
Oil and gas exploration company Apache, based in Houston, Texas, announced on Wednesday, September 7, that it has made a remarkable discovery in West Texas’s Permian Basin – roughly 75 trillion cubic feet of natural gas and over 3 billion barrels of oil.
The new field is situated on the southern side of the Delaware Basin, basically in Reeves County, south of New Mexico. The field is called the “Alpine High” because it is near the Davis Mountains. In effect, it’s discovery and development have increased Apache’s estimated capital spending this year to about $2 billion.
The company has pieced around 307,000 acres at around $1,300 per acre and has drilled 19 wells in the Woodford and Barnett. Apache expects to deliver a combined $4 to $20 million per well, where $3 covers each cubic foot of natural gas and $50 covers each barrel of oil.
“… as we focused on organic growth opportunities. These efforts have resulted in the identification of an immense resource that we believe will deliver significant value for our shareholders for many years,” said John J. Christmann IV, Apache’s President and Chief Executive Officer.
If you own property that has deposits of minerals or oil, you may be interested in selling the rights to those minerals. Contact The Mineral Auction at (512) 698-2802 to learn more about the benefits.
In most countries, the government owns all rights to all mineral resources such as oil, gas, minerals, and rocks. Entities are prohibited from unearthing and selling mineral commodities without proper authorization.
However, in the United States, ownership of mineral resources, found below the surface, belong to the individuals or organizations that own the surface. This means that they own both “surface rights” and the “mineral rights.” The owner is free to lease, sell, or bequest his or her mineral rights to other people.
Most states have laws governing the transfer ownership of mineral rights, mining, and drilling activity. When you sell your mineral rights, the buyer and all future mineral rights owners will have the right to mine on the property. It is also possible that the new mineral owner’s goal is to sell the mineral rights to a mining company who will later extract the minerals for profit. Mineral rights owners can come to the land above their minerals at any time. So it may be a few years before sellers see anyone come calling for the mineral rights they’ve sold.
If your property has mineral deposits, it may be a good idea to sell your mineral rights. Contact The Mineral Auction at (512) 698-2802 to learn more about how beneficial it can be to sell your mineral rights.
Many people have unclaimed oil and gas royalties of which they do not know about. Every state has an account of unclaimed funds that they are responsible for maintaining in situations where ownership is unclear. Among the most common reasons for the unclaimed royalties are invalid mailing addresses, simple misspellings, or a minor title issue.
In effect, this state requirement allows oil companies to give away the responsibility of administration over these oil and gas royalties after a period of three to ten years, depending on the state. At this point, any records the oil company may have are given to the state, and administering these funds is now a task for the state to handle. These funds now become part of that state’s Unclaimed Property. A separate article titled “Royalty in Suspense” gives information about how to access royalties that are not under state control.
If you’ve recently claimed a royalty and no longer want control of it, the brokers of The Mineral Auction can help you get set on the right path to selling your oil, gas, or mineral royalties. Contact us at (512) 698-2802.
In order to sustain the oil and gas supply needs of consumers, oil companies secure a legal contract under an “Oil, Gas, and Mineral Lease,” which allows them to tap into the rich mineral resources beneath the land of a mineral rights owner.
Under such a contract, oil companies or operators pay mineral owners for allowing them to tap into their mineral resources and mineral owners who strike a deal with oil companies automatically receive a lease bonus. Mineral rights owners under certain contracts are entitled to get an additional payment from oil companies in the form of a royalty percentage upon conducting any mineral-related activities, such as drilling. Oil companies initially make a proposal to notify the landowner and pay them before conducting any drilling activities, which may last from several days to several months.
If you are a mineral rights owner and you are planning to lease or sell your estate in the Austin area, The Mineral Auction professional team may be able to help you sell your mineral rights. Call our office at (512) 698-2802 to discover how we could help you find potential buyers.
On May 23,2016, Parsley Energy, an independent oil and natural gas company based in Austin, Texas entered into an agreement to acquire approximately 30,000 acres of mineral rights in Pecos and Reeves Counties for $280.5 million. The Southern Delaware Basin deal will cost the company $280.5 million in cash and is expected to close by July 14, 2016.
The company intends to finance the acquisition by debt and equity issuance. “Increasing netbacks per barrel of oil equivalent with no incremental capital expenditures or operating expenses elevates the return profile on the associated acreage, making it among the most compelling in our corporate portfolio,” stated Bryan Sheffield, CEO of Parsley Energy. The company has filed a registration statement (including a prospectus) with the SEC for the equity offering.
If you are looking to sell your mineral rights, the team at The Mineral Auction can help you work with some of the best and most reputable people in the business. Call today at (512) 698-2802 and you can rest assured knowing that your finances and assets are in great hands.
Like any other business, it is important for first time mineral rights owners to have an understanding of what to expect from this ownership. This is especially true if an individual is looking to sell their mineral rights, as the marketplace can be incredibly complicated.
Interestingly, according to the Texas Landowners Association, it is not uncommon for land owners to have no idea that they are sitting on mineral rights until they are approached by a prospective buyer. So, for those who are new to the mineral rights world, the Texas Landowners Association offers the following, helpful tips:
- Understand whether you are looking to sell OR lease your mineral rights, as these processes and outcomes are very different for mineral rights owners.
- Never forget to negotiate when you are given an offer. Chances are your property has great value, which you stand to greatly profit from if you negotiate properly.
- Understand market value. In the mineral rights industry, it is hard to determine the full value of your property. The best course of action is to introduce your property to many different buyers and have them compete, driving up the price of your mineral rights.
- Determine the best time to sell or lease your mineral rights. Do not be blindsided by instant offers. Take your time and assess the situation.
At The Mineral Auction, we take the confusion out of the mineral rights selling process by putting your rights up at auction in front of our network of thousands of qualified buyers. Find out how we can help you get the best price for your mineral rights by calling us today at (512) 698-2802.
According to Mineral Rights Coach, there are four types of mineral rights ownership. For your convenience and understanding, we have covered them here.
The first is mineral interest. Typically, a mineral interest owner is entitled to enter and exit the property. This owner may also be able to reasonably use the surface for conducting exploratory operations as well as producing and drilling for oil and gas.
The second is royalty interest. This happens when the mineral rights are leased, this type of owner is considered to hold a non-working interest. It often involves an owner who obtains a share after a lease agreement with another party has been signed.
The third is working interest. This type of ownership occurs when the property is leased, and the owner is responsible for all of the drilling, operation, development, and exploration of the property. The revenue share for this ownership is the amount left after taking out royalty interest and other non-working interest shares.
The fourth and final is overriding royalty interests. This involves the acquisition of a portion of the revenues from oil and gas production, and it is free of production costs. The ownership expires as soon as the lease is abandoned at the end of production.
If you are considering selling or leasing your mineral rights in Austin, you can consult with our team of professionals at The Mineral Auction to get a better understanding of your options. Contact us today at (512) 698-2802.
Learning about the market and how to sell mineral rights may be overwhelming, especially to a first-time mineral rights owner. That’s why the US Mineral Exchange sought to help mineral owners obtain the maximum value for their property by providing the following tips:
- Provide all documentation
- Steer clear of common mistakes
- Learn the basics of mineral rights value
- Understand the market value
- Know that only selling half of your mineral rights is an option
- Never take the first offer, and study the offers well before deciding
- Do not take unsolicited offers to sell your mineral rights
- Get help from professionals
- Option agreements are usually red flags
Owners, especially those who are new in the industry, may benefit from the years of experience and expertise our team of professionals can offer. If you are looking to sell your mineral rights, consult with The Mineral Auction team before making any major decisions. We understand the complexity of the world of mineral rights, and we want to help you get the best deal possible for your property. Call our Austin office at (512) 698-2802 today.