Understanding the Different Types of Ownership
Posted on Monday, February 1st, 2016 at 5:22 pm
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.