Leasing Your Mineral Rights

Mineral rights give a property owner the right to keep, sell, mine, produce, or extract the mineral estates. As an owner interested in putting these rights up for sale, oftentimes you will encounter oil and gas companies that favor a lease agreement to the mineral rights. Sometimes companies prefer a lease agreement when they are uncertain exactly what minerals and how many are present in the land. If the company finds suitable material, it will extract the minerals. If it doesn’t, officials will wait for the lease to expire, and the rights transfer back to the owner.

Royalties on Leased Rights

When you lease your mineral rights, you get a return on what is extracted in the form of two payments. This includes either a one-time payment when the lease is signed, or a royalty rate on everything extracted from the land. Privately negotiated royalty rates can be determined on the basis of:

  • Percentage of return on all extracted resources
  • Other producers offering leases in the area
  • Number of nearby mineral owners

The lease agreement you make with a company will specify how much you will be paid in royalties. When a mining company leases your mineral rights, they have rights to the land and are entitled to explore, drill, bring large machinery, and excavate your land. If you are unsure about the leasing process, it may be in your best interest to sell your rights with the help of The Mineral Auction.

Contact an Austin Mineral Rights Broker for More Information

If you or someone you know is thinking about selling your mineral rights, contact The Mineral Auction at 512-698-2802 for a quality, no hassle experience dealing with the transfer of this ownership. The Mineral Auction has thousands of reliable connections to oil and gas and mineral companies, and we are confident we can provide you with the knowledge and results you are looking for regarding your mineral rights.

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