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.


Texas law and your mineral estate

Posted on Friday, November 6th, 2015 at 4:08 pm    

Land ownership in Texas is divided between the mineral estate and the surface estate, according to the Railroad Commission of Texas. Considering the widespread development of oil and gas properties in Texas over time, the two estate properties are usually owned by different people. The division happens when the surface estate is sold and the mineral rights are retained by the owners. There are cases in which the owner sells mineral rights but keeps the surface, but it is considered a rare occasion.

Mineral estate is dominant under the Texas law, which generally means that the owner may freely use the surface to access the mineral property, depending on the lease or the deed involved. However, many cities have ordinances that restrict oil and gas activities on the properties within the city’s jurisdiction.

If you are considering selling mineral rights in Texas, our qualified representatives at The Mineral Auction are ready to work on your case and alleviate the burden of finding a trustworthy buyer. Call us now at (512) 698-2802 to learn about our unique approach.

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