Four Types of Mineral Ownership
If you are fortunate enough to have found minerals, oil, or gas on your property, you’re in a wonderful position. However, you may have some questions about what you should do next. One of the most common areas of confusion when dealing with mineral rights leasing is mineral ownership. There are actually four different types of mineral ownership, and each means something different to you. We at The Mineral Auction want to ensure that you get everything you are entitled to once you’ve discovered your mineral well or taken possession of mineral rights, and that you understand every step in the process.
Mineral ownership, or mineral rights, are understood to be the property rights to exploit an area for the minerals, gas, or oil it harbors. The four types of mineral ownership are:
- Mineral Interest – interest generated after the production of oil and gas after the sale of a deed or a lease
- Royalty Interest – occurs when mineral rights are leased. Should the property owner enter into a lease agreement with another party, the owner of the mineral rights retains royalty interest.
- Working Interest – also occurs through leasing and is associated with any and all exploration, drilling, development, and operation of the property.
- Overriding Royalty Interest – differs from the previous types of ownership in that it does not provide ownership of any materials under the ground, but rather ownership of a portion of revenue generated from oil and gas production.
Each of these ownership options offers a certain monetary value and should be considered when you own, lease out, or put your mineral rights up for sale.
Contact a Mineral Auction Representative Today
If you’re considering selling your mineral rights, our representatives at The Mineral Auction can get you in touch with a vast network of mineral rights buyers. Contact a member of our team today at (512) 698-2802 if you have any questions about the process.