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.

Tips for Mineral Owners

Posted on Sunday, January 24th, 2016 at 4:12 pm    

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.

Your Rights as a Mineral Estate Owner

Posted on Monday, January 4th, 2016 at 5:54 pm    

America’s policies regarding mineral rights favor the property owners by giving them the right to do what they will with the resources on their land. This has been great for Texas land owners, as our state has had a rich history of mineral production since 1869. Approximately two thirds of Texas actively produces oil, and the state actually produced about 35% of the country’s overall oil output in 2013.

When a new reserve of minerals is discovered on land in Texas, the current owner of that land automatically comes into possession of the full rights to all the minerals that may be found there. Only in instances where previous property owners retained surface or mineral rights will a current owner not be given possession of these rights. Records of mineral right ownership are kept in local county clerk’s offices and available to all upon request.

There have also been many cases where landowners were not aware that minerals existed on their property until oil and gas companies brought it to their attention with inquiries and monetary offers.

If you are looking to sell your mineral rights in Texas, the professionals at The Mineral Auction can help you find buyers and secure the best deal available. Call us at (512) 698-2802 today to learn more.

The Varying Values of Mineral Rights For Sale

Posted on Tuesday, December 22nd, 2015 at 2:04 pm    

In a recent article from MineralWise, the author compared the process of estimating the value of minerals to meteorologists predicting the weather, saying that both are subject to a number of factors and can vary widely.

Firstly, mineral rights vary by location. The value of minerals on your land will be higher if those minerals are located close to build-ups of hydrocarbon underground. Geology can vary greatly from region to region, and even from small areas; therefore, a big part of finding high-value minerals on your property is luck.

Another factor in the value of your mineral rights will be the size or amount of minerals on your land. Companies will naturally be more inclined to spend higher amounts on larger caches of product. This, again, is almost entirely up to luck.

A third aspect to valuation of your minerals will be the economy. Commodity prices will determine how much a company wants to spend on whichever mineral you possess, and certain elements are simply worth more than others.

While much of selling mineral rights has to do with being lucky enough to find a rich well on your land, one thing that you don’t have to leave up to fortune is finding a skilled and knowledgeable mineral rights broker to help you sell your minerals for a high dollar. At The Mineral Auction, our team understands the business of putting rights up for sale, and we work to ensure that you will be happy with the deal you end up making. To learn more from our experts, call (512) 698-2802 today.

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.

Points to understand when talking about mineral rights

Posted on Friday, October 16th, 2015 at 4:39 pm    

Mineral rights are the right of the owner to utilize any or all of the minerals below the surface of their property.

According to Geology.com, the following are some important notes when dealing with selling or leasing your mineral rights:

  • Seek professional help – The complicated process and transaction that is enveloped in mineral rights involve a large sum of money. If someone has tapped you about selling your mineral rights, you must seek legal help at once. Mineral rights-knowledgeable lawyers will be able to carry your transaction and build your case.
  • Surface owner has rights – The state law provides basic rights for surface owners, although, owners may decide on needing stronger protections for their own discretion.
  • Buyers and sellers must be alert – The owner’s own knowledge of the subject will greatly determine the transaction’s success.

If you are looking to sell or lease your mineral rights, please consult first with our team of attorneys at The Mineral Auction to further understand all aspects of mineral rights process. Call us today at (512) 698-2802.

Oil and gas investor settles with Chesapeake-based natural gas company

Posted on Monday, September 28th, 2015 at 8:37 pm    

Edward Bass, an oil and gas investor from Texas, and Barnett Shale mineral rights owners settled with Chesapeake Operating, Inc., a natural gas production company.

Almost 4,000 acres in Tarrant County and Johnson County are owned by Bass and the other landowners. Chesapeake has been handling some of those properties since 2007. The lawsuit was based on alleged underpaying of gas and oil royalties and a breaching of contract with the owners.

In the lawsuit filed in 2013, Chesapeake Operating Inc. allegedly violated the agreement to sell, from one company to another, natural gas production. The company also allegedly made wrong deductions from royalty payments to hide expenses for production.

Daniel Charest, who represents the landowner plaintiffs, said, “We’re very pleased that this matter has been resolved… We believe the evidence was compelling on behalf of the property owners”.

If you are a mineral rights owner and aim to settle your property or sell your rights, consult with our team of mineral rights brokers at The Mineral Auction. Call (512) 698-2802 for a more in-depth discussion.

September could be a good month for LNG investors

Posted on Thursday, September 3rd, 2015 at 8:00 pm    

The month of September would be a good month to invest in natural gas, as the U.S. Environmental Impact Assessment (EIA) sees a dramatic plunge in the production of natural gas from seven major shale basins across the country after an all-time high several months ago, Business Insider reported on Wednesday, September 2.

In May, the seven major shale basins produced a total of 45.6 billion cubic feet per day. This September, however, the production is projected to drop 1.5%. The decline is partly due to the depletion from existing wells, as well as the lack of new wells being drilled. This decrease in the supply could raise the prices quite a bit, making it possible for the producers to gain profit and drill new wells.

The volatility of the oil and natural gas market makes it more appealing for mineral rights owners to sell their mineral rights rather than lease them. We at The Mineral Auction are here to help you get the best value out of your mineral rights. Get professional advice on selling your mineral rights by calling (512) 698-2802 today.

How fluctuating oil prices drive mergers in the oil and gas industry

Posted on Tuesday, September 1st, 2015 at 6:49 pm    

In a report published by Bloomberg Business late last month, Danish business conglomerate A.P. Moeller-Maersk A/S is eyeing for acquisitions in the North Sea to expand reserves, given that mergers and acquisitions are more cost-efficient nowadays than exploration.

Fluctuating oil prices is the primary reason why oil and natural gas players see takeovers as a better option than expensive explorations. Among the first to bulk up in the U.S. are Houston-based Noble Energy and Rosetta Resources in a buyout worth $2.1 billion. At the start of this year, Hillcrest Resources Ltd. has announced its purchase of Texas-based Gulfsands Petroleum USA. Late last year, Encana Corp. has announced its intent to purchase Athlon Energy in a multi-billion dollar deal.

In today’s volatile energy market, it would be a wise move for mineral rights owners to sell their mineral rights upfront to free themselves from the risks caused by the sector’s ever-changing landscape. To know more about getting the best value out of your mineral rights, seek the help of our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today.

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